Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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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			96
Industry Trends			96
Summary of Critical Accounting Estimates			98
Acquisitions and Dispositions			98
Results of Operations			99
Investments			114
Derivatives			128

Liquidity and Capital Resources			129
Adopted Accounting Pronouncements			136
Future Adoption of Accounting Pronouncements			136
Non-GAAP and Other Financial Disclosures			136
Risk Management			138
Subsequent Events			138

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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, 2023 (the “2023 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.

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

We are closely monitoring political and economic conditions that might contribute to global market volatility and impact our business operations, investment portfolio and derivatives, such as global inflation, supply chain disruptions, acts of war, and banking sector volatility. 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 2023 Annual Report.

Governments and central banks around the world use fiscal and monetary policies to address uncertain economic conditions. In the United States (“U.S.”), the Board of Governors of the Federal Reserve System (“Federal Reserve Board”) and the Federal Open Market Committee took various actions in 2023 to promote economic stability and combat inflation, including raising interest rates. Rates have remained steady in 2024, reflecting lower inflation. The European Central Bank and Bank of England have been taking similar actions. The Bank of Japan (“BoJ”) has, until recently, mostly kept its policy settings on hold, reflecting a more cautious view on growth and inflation. The Japanese yen has weakened against the U.S. dollar reflecting policy divergence between the BoJ and the Federal Reserve Board.

Impact of Market Interest Rates

Market 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. 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 2023 Annual Report.

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Competitive Pressures

See “Business — Competition” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Competitive Pressures” in the 2023 Annual Report for information on our competitive position.

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 2023 Annual Report, as amended or supplemented here.

State Insurance Regulation

Surplus and Capital

Investments

The National Association of Insurance Commissioners (“NAIC”) is focused on enhancing regulatory oversight of insurers’ investments in complex assets, such as structured securities. In connection with evaluating the risks of investing in leveraged loans and collateralized loan obligations (“CLOs”), the NAIC adopted an amendment to the Purposes and Procedures Manual in 2023. Under the amendment, the NAIC Structured Securities Group (“SSG”) will assign risk weights to CLOs based on its own modeling, as opposed to credit ratings. The SSG will model CLO investments and evaluate tranche level losses across all debt tranches under a series of calibrated and weighted collateral stress scenarios to assign NAIC designations that minimize risk-based capital (“RBC”) arbitrage. The NAIC’s goal is to ensure that the aggregate RBC factor for owning all tranches of a CLO is similar to that required for owning all of the underlying loan collateral. Insurers are required to begin reporting the financially modeled NAIC designations for CLOs with their year-end 2024 financial statement filings, although the NAIC announced in March 2024 that implementation is expected to be delayed by a year to allow more time to develop the modeling methodology. The delay requires an amendment to the Purposes and Procedures Manual, which the NAIC is likely to adopt in August 2024.

Standards of Conduct, ERISA, Fiduciary Considerations, and Other Pension and Retirement Regulation

In 2023, the U.S. Department of Labor (the “DOL”) proposed a regulation to change the definition of “fiduciary” for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”) and parallel provisions of the Internal Revenue Code of 1986, as amended (the “Code”), when a financial professional, including an insurance producer, provides investment advice, and to amend various existing prohibited transaction exemptions (“PTEs”) that financial professionals rely on when making recommendations. On April 23, 2024, the DOL finalized and published this new definition of “fiduciary” for purposes of ERISA and parallel provisions of the Code and finalized and published amendments to these PTEs. We are evaluating the potential impact of these developments on our business, particularly as it pertains to the sale of insurance, annuity and welfare benefit products to retirement investors.

Management of Climate Risk

The U.S. Securities and Exchange Commission (“SEC”) is also continuing its focus on climate, and environmental, social and governance (“ESG”) risks and opportunities and has published its rulemaking list which contains certain ESG-related rulemakings that the SEC is considering. In March 2024, the SEC adopted final rules requiring registrants to provide additional climate-related information in their registration statements and annual reports, including in their financial statements. The final rules set forth requirements for disclosure of material climate-related risks, mitigation activities, targets and goals, and governance. The rules also require disclosure of certain greenhouse gas emissions metrics and attestation of emissions disclosures. In addition, the final rules require disclosure of information relating to the financial statement effects of severe weather events and other natural conditions. The rules include a phased-in compliance period beginning with the 2025 fiscal year for large accelerated reporting companies, including MetLife, Inc. Multiple parties initiated litigation challenging the final rules, and in April 2024, the SEC voluntarily stayed the final rules pending completion of judicial review. In 2022, the SEC also proposed rules requiring registered investment companies, business development companies, and registered and certain unregistered investment advisers to disclose in their fund prospectuses, annual reports and Form ADV information about how funds and advisers incorporate ESG factors into their investment strategies.

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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 (“FPBs”), market risk benefits (“MRBs”) and the accounting for reinsurance;

(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 — the most significant of which relate to the aforementioned critical accounting estimates. 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 2023 Annual Report.

Acquisitions and Dispositions

Pending Disposition of MetLife Malaysia

For information regarding the Company’s pending disposition of its ownership interests in AmMetLife Insurance Berhad (Malaysia) and AmMetLife Takaful Berhad (Malaysia) (collectively, “MetLife Malaysia”), each an operating joint venture accounted for under the equity method, see Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.

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Results of Operations

Overview

MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits; Retirement and Income Solutions (“RIS”); Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other.

Key Financial Highlights

Net income available to MetLife, Inc.’s common shareholders of $800 million for the three months ended March 31, 2024, compared to $14 million for the three months ended March 31, 2023.
Adjusted earnings available to common shareholders of $1.3 billion for the three months ended March 31, 2024, compared to $1.2 billion for the three months ended March 31, 2023.

Consolidated Results


	Three Months Ended March 31,
		2024		2023
		(In millions)
Revenues
Premiums		$	10,053	$	9,589
Universal life and investment-type product policy fees		1,248		1,289
Net investment income		5,436		4,645
Other revenues		674		639
Net investment gains (losses)		(375)		(684)
Net derivative gains (losses)		(979)		(90)
Total revenues		16,057		15,388
Expenses
Policyholder benefits and claims and policyholder dividends		10,221		10,031
Policyholder liability remeasurement (gains) losses		(22)		(9)
Market risk benefit remeasurement (gains) losses		(694)		188
Interest credited to policyholder account balances		2,290		1,864

Amortization of deferred policy acquisition costs and value of business acquired		508		470
Amortization of negative value of business acquired		(6)		(7)
Interest expense on debt		264		255
Other expenses, net of capitalization of deferred policy acquisition costs		2,451		2,339
Total expenses		15,012		15,131
Income (loss) before provision for income tax		1,045		257
Provision for income tax expense (benefit)		170		172
Net income (loss)		875		85
Less: Net income (loss) attributable to noncontrolling interests		8		5
Net income (loss) attributable to MetLife, Inc.		867		80
Less: Preferred stock dividends		67		66

Net income (loss) available to MetLife, Inc.’s common shareholders		$	800	$	14

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Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $786 million primarily due to the following:

Net Investment Gains (Losses)(1) - Favorable change of $309 million ($244 million, net of income tax):

Lower losses on sales of fixed maturity securities
Lower impairment losses on mortgage loans

Partially offset by:

Losses on foreign currency transactions in the current period
Losses on other limited partnerships in the current period

Net Derivative Gains (Losses)(2) - Unfavorable change of $889 million ($702 million, net of income tax)(3):

Long-term interest rates increased in the current period versus decreased in the prior period - unfavorable impact to the estimated fair value of receiver swaps and swaptions
The U.S. dollar strengthened more significantly against the Japanese yen in the current period compared to the prior period - unfavorable impact to the estimated fair value of sell-U.S. dollar currency forwards

Market Risk Benefit Remeasurement (Gains) Losses(4) - Favorable change of $882 million ($697 million, net of income tax):

Long-term interest rates increased in the current period versus decreased in the prior period

Adjusted Earnings(5) - Favorable change of $150 million. See “— Consolidated Results — Adjusted Earnings.”

Taxes - Favorable change in effective tax rate - 16% in the current period versus 67% in the prior period

Current period effective tax rate on income before provision for income tax was 16% versus the U.S. statutory rate of 21% primarily due to tax benefits from:
The reversal of previously non-deductible losses
Non-taxable investment income
Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method
Corporate tax deduction for stock compensation
Prior period effective tax rate on income before provision for income tax was 67% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates

Partially offset by tax benefits from:

Low income housing and other tax credits
Corporate tax deduction for stock compensation
Non-taxable investment income

(1) See “— Investments — Overview” and “— Investments — Investment Portfolio Results — Net Investment Gains (Losses)” for information regarding management of our investment portfolio.

(2) See “— Derivatives — Net Derivative Gains (Losses)” for information regarding the use of derivatives to hedge market risk.

(3) 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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(4) See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s MRBs.

(5) As used in “— Consolidated Results — Adjusted Earnings” and as more fully described in “— Non-GAAP and Other Financial Disclosures,” we refer to adjusted earnings, which does not equate to net income (loss), as determined in accordance with GAAP, to analyze our performance, evaluate segment performance, and allocate resources. We believe that the presentation of adjusted earnings and other financial measures based on adjusted earnings, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results. Adjusted earnings should not be viewed as a substitute for net income (loss). Adjusted earnings available to common shareholders and adjusted earnings available to common shareholders on a constant currency basis should not be viewed as substitutes for net income (loss) available to MetLife, Inc.’s common shareholders.

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Reconciliation of net income (loss) to adjusted earnings available to common shareholders and premiums, fees and other revenues to adjusted premiums, fees and other revenues

Three Months Ended March 31, 2024


		Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
		(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders		$	291	$	290	$	26	$	42	$	50	$	188	$	(87)	$	800
Add: Preferred stock dividends		—		—		—		—		—		—		67		67
Add: Net income (loss) attributable to noncontrolling interests		—		—		—		2		—		—		6		8
Net income (loss)		291		290		26		44		50		188		(14)		875
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
	Net investment gains (losses)	(24)		(121)		(131)		(3)		(37)		(286)		227		(375)
	Net derivative gains (losses)	53		68		(572)		(202)		(14)		(299)		(13)		(979)
	Premiums	—		—		—		—		—		—		—		—
	Universal life and investment-type product policy fees	—		—		—		—		—		—		—		—
	Net investment income	(20)		(78)		232		16		263		(50)		5		368
	Other revenues	—		(20)		—		—		—		39		8		27
Expenses:
	Policyholder benefits and claims and policyholder dividends	—		—		67		(33)		—		19		—		53
	Policyholder liability remeasurement (gains) losses	—		—		—		—		—		—		—		—
	Market risk benefit remeasurement (gains) losses	—		12		13		—		29		640		—		694
	Interest credited to policyholder account balances	—		1		(236)		(40)		(262)		(26)		—		(563)
	Capitalization of deferred policy acquisition costs	—		—		—		—		—		—		—		—
	Amortization of deferred policy acquisition costs and value of business acquired	—		—		—		—		—		—		—		—
	Amortization of negative value of business acquired	—		—		—		—		—		—		—		—
	Interest expense on debt	—		—		—		—		—		—		—		—
	Other expenses	—		—		—		2		(1)		—		(12)		(11)
	Goodwill impairment	—		—		—		—		—		—		—		—
	Provision for income tax (expense) benefit	(2)		29		230		71		(5)		(8)		(55)		260
Adjusted earnings		$	284	$	399	$	423	$	233	$	77	$	159	(174)		1,401
Less: Preferred stock dividends														67		67
Adjusted earnings available to common shareholders														$	(241)	$	1,334

Premiums, fees and other revenues		$	6,330	$	793	$	1,744	$	1,496	$	620	$	880	$	112	$	11,975
Less: adjustments to premiums, fees and other revenues		—		(20)		—		—		—		39		8		27
Adjusted premiums, fees and other revenues		$	6,330	$	813	$	1,744	$	1,496	$	620	$	841	$	104	$	11,948

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Three Months Ended March 31, 2023


		Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
		(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders		$	267	$	130	$	(277)	$	272	$	58	$	(439)	$	3	$	14
Add: Preferred stock dividends		—		—		—		—		—		—		66		66
Add: Net income (loss) attributable to noncontrolling interests		—		—		—		1		1		—		3		5
Net income (loss)		267		130		(277)		273		59		(439)		72		85
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
	Net investment gains (losses)	6		(184)		(617)		(2)		9		(145)		249		(684)
	Net derivative gains (losses)	(24)		19		36		221		(23)		(380)		61		(90)
	Premiums	—		—		—		—		—		—		—		—
	Universal life and investment-type product policy fees	—		—		—		—		—		—		—		—
	Net investment income	(33)		(120)		112		(28)		176		(71)		3		39
	Other revenues	—		(18)		—		—		1		—		14		(3)
Expenses:
	Policyholder benefits and claims and policyholder dividends	—		(2)		14		(82)		—		—		—		(70)
	Policyholder liability remeasurement (gains) losses	—		—		—		—		—		—		—		—
	Market risk benefit remeasurement (gains) losses	—		(36)		(4)		—		12		(160)		—		(188)
	Interest credited to policyholder account balances	—		(1)		(124)		(28)		(169)		—		—		(322)
	Capitalization of deferred policy acquisition costs	—		—		—		—		—		—		—		—
	Amortization of deferred policy acquisition costs and value of business acquired	—		—		—		—		—		—		—		—
	Amortization of negative value of business acquired	—		—		—		—		—		—		—		—
	Interest expense on debt	—		—		—		—		—		—		—		—
	Other expenses	—		—		—		2		(1)		—		(28)		(27)
	Goodwill impairment	—		—		—		—		—		—		—		—
	Provision for income tax (expense) benefit	11		72		26		(25)		(6)		159		(57)		180
Adjusted earnings		$	307	$	400	$	280	$	215	$	60	$	158	(170)		1,250
Less: Preferred stock dividends														66		66
Adjusted earnings available to common shareholders														$	(236)	$	1,184

Adjusted earnings available to common shareholders on a constant currency basis (1)		$	307	$	400	$	269	$	221	$	57	$	158	$	(236)	$	1,176

Premiums, fees and other revenues		$	6,049	$	630	$	1,794	$	1,372	$	582	$	959	$	131	$	11,517
Less: adjustments to premiums, fees and other revenues		—		(18)		—		—		1		—		14		(3)
Adjusted premiums, fees and other revenues		$	6,049	$	648	$	1,794	$	1,372	$	581	$	959	$	117	$	11,520

Adjusted premiums, fees and other revenues on a constant currency basis (1)		$	6,049	$	648	$	1,659	$	1,380	$	568	$	959	$	117	$	11,380

(1)Amounts for Group Benefits, RIS, MetLife Holdings and Corporate & Other are shown on a reported basis, as constant currency impact is not significant.

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Consolidated Results — Adjusted Earnings

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $428 million, or 4%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $568 million, or 5%, compared to the prior period due to growth across most of our segments, partially offset by the expected decline in our MetLife Holdings segment from business run-off.


	Three Months Ended March 31,
			2024		2023
		(In millions)
Group Benefits			$	284	$	307
RIS			399		400
Asia			423		280
Latin America			233		215
EMEA			77		60
MetLife Holdings			159		158
Corporate & Other			(241)		(236)
Adjusted earnings available to common shareholders			$	1,334	$	1,184

Adjusted earnings available to common shareholders on a constant currency basis			$	1,334	$	1,176

Adjusted premiums, fees and other revenues			$	11,948	$	11,520
Adjusted premiums, fees and other revenues on a constant currency basis			$	11,948	$	11,380

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.

Adjusted Earnings Available to Common Shareholders - Increased $150 million on a reported basis, primarily due to the following business drivers:

Reinsurance Transaction - Decreased adjusted earnings by approximately $50 million as a result of the reinsurance transaction that closed in November 2023

Foreign Currency - Decreased adjusted earnings by $8 million, primarily in our Asia segment

Market Factors - Increased adjusted earnings by $220 million:

Variable investment income increased - higher returns on private equity funds
Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower derivative income, as well as lower average invested assets in our MetLife Holdings segment due to business run-off

Partially offset by:

Higher average interest crediting rates on investment-type and certain insurance products, primarily in our RIS and Asia segments

Volume Growth - Increased adjusted earnings by $21 million:

Higher average invested assets primarily in our Latin America and RIS segments
Higher sales and business growth in our foreign segments

Largely offset by:

Increase in interest credited expenses on long duration products primarily in our Latin America and RIS segments

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Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $25 million:

Favorable underwriting experience primarily in our Asia and EMEA segments
Lower dividend expense due to business run-off in our MetLife Holdings segment

Partially offset by:

Unfavorable mortality primarily in our RIS segment

Expenses - Decreased adjusted earnings by $37 million:

Higher direct expenses, including employee-related and technology costs, in most of our segments

Partially offset by:

Lower corporate-related expenses, primarily in Corporate & Other

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Segment Results and Corporate & Other

Group Benefits

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $281 million, or 5%, compared to the prior period, primarily driven by growth in both core and voluntary products.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	6,645	$	6,359









Total adjusted expenses		6,286		5,968
Provision for income tax expense (benefit)		75		84
Adjusted earnings		$	284	$	307

Adjusted premiums, fees and other revenues		$	6,330	$	6,049

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Unless otherwise stated, all amounts discussed below are net of income tax.

Adjusted Earnings - Decreased $23 million primarily due to the following business drivers:

Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $17 million:

Unfavorable change from refinements to certain insurance and other liabilities in both periods
Unfavorable morbidity - higher incidence in disability businesses and an unfavorable change in dental prior year development

Expenses - Decreased adjusted earnings by $9 million:

Higher technology, employee-related and various other operating expenses exceeded the corresponding increase in adjusted premiums, fees and other revenues

Retirement & Income Solutions

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $165 million, or 25%, compared to the prior period. The increase was primarily due to growth in our structured settlements and the United Kingdom (“U.K.”) longevity reinsurance businesses. Changes in RIS premiums are generally offset by a corresponding change in policyholder benefits.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	2,902	$	2,462









Total adjusted expenses		2,398		1,957
Provision for income tax expense (benefit)		105		105
Adjusted earnings		$	399	$	400

Adjusted premiums, fees and other revenues		$	813	$	648

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Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Unless otherwise stated, all amounts discussed below are net of income tax.

Adjusted Earnings - Decreased $1 million primarily due to the following business drivers:

Market Factors - Increased adjusted earnings by $28 million:

Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower derivative income
Variable investment income increased - higher returns on private equity funds

Largely offset by:

Higher average interest crediting rates on investment-type products

Volume Growth - Increased adjusted earnings by $6 million:

Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets

Partially offset by:

Increase in interest credited expenses on long duration products

Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $29 million:

Less favorable mortality - annuity businesses

Expenses - Decreased adjusted earnings by $8 million:

Higher expenses, including technology and certain employee-related costs

Asia

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 decreased $50 million, or 3%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $85 million, or 5%, compared to the prior period, as increases in premiums in Korea and Australia, as well as fee income from Japan’s foreign currency life and annuity products, were partially offset by a decrease in premiums from Japan’s yen-denominated life products.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	2,852	$	2,675









Total adjusted expenses		2,270		2,270
Provision for income tax expense (benefit)		159		125
Adjusted earnings		$	423	$	280

Adjusted earnings on a constant currency basis		$	423	$	269

Adjusted premiums, fees and other revenues		$	1,744	$	1,794
Adjusted premiums, fees and other revenues on a constant currency basis		$	1,744	$	1,659

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

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Adjusted Earnings - Increased $143 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $11 million:

Japanese yen and Korean won weakened against the U.S. dollar

Market Factors - Increased adjusted earnings by $96 million:

Variable investment income increased - higher returns on private equity funds
Recurring investment income increased - higher yields on fixed income securities

Partially offset by:

Higher average interest crediting rates on investment-type and certain insurance products

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $32 million:

Higher surrender charges in Japan

Taxes - Increased adjusted earnings by $19 million:

Favorable change in Korea - tax benefits due to a tax audit settlement in the current period and lower dividend withholding tax as a result of a rate decrease
Favorable change in Japan - tax benefits from higher foreign earnings taxed at lower rates in the current period

Latin America

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $124 million, or 9%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $116 million, or 8%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	1,882	$	1,751










Total adjusted expenses		1,551		1,448
Provision for income tax expense (benefit)		98		88
Adjusted earnings		$	233	$	215

Adjusted earnings on a constant currency basis		$	233	$	221

Adjusted premiums, fees and other revenues		$	1,496	$	1,372
Adjusted premiums, fees and other revenues on a constant currency basis		$	1,496	$	1,380

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Adjusted Earnings - Increased $18 million on a reported basis primarily due to the following business drivers:

Foreign Currency - Increased adjusted earnings by $6 million:

Mexican peso strengthened against the U.S. dollar

Largely offset by:

Chilean peso weakened against the U.S. dollar

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Market Factors - Increased adjusted earnings by $5 million:

Recurring investment income increased - increase in bond index returns on our Chilean encaje within fair value option (“FVO”) securities and higher yields on fixed income securities, primarily in Mexico and Chile, partially offset by lower earnings from a joint venture investment in Chile

Largely offset by:

Unfavorable impact of lower inflation, primarily in Chile

Volume Growth - Increased adjusted earnings by $15 million:

Higher sales, primarily in Mexico and Chile
Higher average invested assets, primarily in Chile

Partially offset by:

Increase in interest credited expenses on long duration products

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $12 million:

Favorable refinements to certain insurance liabilities primarily in Chile and Mexico

Partially offset by:

Unfavorable underwriting - prior period reduction to the incurred but not reported reserve in Mexico

Expenses - Decreased adjusted earnings by $11 million:

Higher corporate-related and various other operating expenses, primarily in Mexico and Chile

Other - Decreased adjusted earnings by $7 million - includes amortization of deferred policy acquisition costs (“DAC”)

EMEA

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $39 million, or 7%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $52 million, or 9%, compared to the prior period primarily due to increases in our (i) corporate solutions business in the Gulf, the U.K. and Egypt, (ii) credit life business in Turkey and Romania, and (iii) accident & health business across the region.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	674	$	626










Total adjusted expenses		571		550
Provision for income tax expense (benefit)		26		16
Adjusted earnings		$	77	$	60

Adjusted earnings on a constant currency basis		$	77	$	57

Adjusted premiums, fees and other revenues		$	620	$	581
Adjusted premiums, fees and other revenues on a constant currency basis		$	620	$	568

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

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Adjusted Earnings - Increased $17 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $3 million:

Turkish lira weakened against the U.S. dollar

Market Factors - Increased adjusted earnings by $7 million:

Recurring investment income increased - higher yields on fixed income securities

Volume Growth - Increased adjusted earnings by $7 million:

Increase in sales and business growth:
Corporate solutions business in the Gulf, the U.K. and Egypt
Accident & health business across the region
Credit life business in Turkey

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $19 million:

Favorable underwriting experience across the region
Favorable change from refinements to certain insurance liabilities in the current period

Expenses - Decreased adjusted earnings by $8 million:

Higher direct expenses, including employee-related costs and various other operating expenses across the region

Other - Decreased adjusted earnings by $4 million - includes amortization of DAC

MetLife Holdings

Business Overview. Our MetLife Holdings segment consists of operations relating to products and businesses, previously included in our former retail business, that we no longer actively market in the U.S. As anticipated, adjusted premiums, fees and other revenues continue to decline from expected business run-off.


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	1,851	$	2,086









Total adjusted expenses		1,655		1,891
Provision for income tax expense (benefit)		37		37
Adjusted earnings		$	159	$	158

Adjusted premiums, fees and other revenues		$	841	$	959

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Unless otherwise stated, all amounts discussed below are net of income tax.

Adjusted Earnings - Increased $1 million primarily due to the following business drivers:

Reinsurance Transaction - Decreased adjusted earnings by approximately $50 million as a result of the reinsurance transaction that closed in November 2023

Market Factors - Increased adjusted earnings by $44 million:

Variable investment income increased - higher returns on private equity funds

Partially offset by:

Recurring investment income decreased - lower average invested assets due to business run-off, largely offset by higher yields on fixed income securities

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Volume Growth - Decreased adjusted earnings by $8 million, consistent with business run-off

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $8 million:

Lower dividend expense due to business run-off

Expenses & Other - Increased adjusted earnings by $6 million:

Lower expenses primarily driven by business run-off

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Corporate & Other


	Three Months Ended March 31,
		2024		2023
		(In millions)





Total adjusted revenues		$	210	$	167









Total adjusted expenses		454		440
Provision for income tax expense (benefit)		(70)		(103)
Adjusted earnings		(174)		(170)
Less: Preferred stock dividends		67		66
Adjusted earnings available to common shareholders		$	(241)	$	(236)

Adjusted premiums, fees and other revenues		$	104	$	117

The table below presents adjusted earnings available to common shareholders by source:


	Three Months Ended March 31,
		2024		2023
		(In millions)
Business activities		$	6	$	19
Net investment income		102		51
Interest expense on debt		(265)		(258)
Corporate initiatives and projects		(6)		(14)
Other		(81)		(71)
Provision for income tax (expense) benefit and other tax-related items		70		103
Preferred stock dividends		(67)		(66)
Adjusted earnings available to common shareholders		$	(241)	$	(236)

Three Months Ended March 31, 2024 Compared with the Three Months Ended March 31, 2023

Adjusted Earnings - Decreased $5 million primarily due to the following:

Business Activities – Decreased adjusted earnings by $10 million:

Higher expenses in certain of our businesses

Net Investment Income - Increased adjusted earnings by $40 million:

Recurring investment income increased - the impact of tax equity investments now accounted for under the proportional amortization method, increased yields on fixed maturity securities and higher average invested assets
Variable investment income increased – higher returns on private equity funds

Interest Expense on Debt – Decreased adjusted earnings by $6 million:

Senior note issuances in July 2023 and March 2024

Partially offset by:

Early senior note redemption in February 2023
Surplus note repayment at maturity in January and February 2024

Corporate Initiatives and Projects & Other – Decreased adjusted earnings by $2 million:

Higher employee-related expenses

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Higher litigation reserves

Substantially offset by:

Lower corporate-related expenses, including from initiatives and projects

Taxes - Unfavorable change in Corporate & Other’s taxes:

Lower utilization of tax preferenced items, primarily due to low-income housing tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method

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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 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 the vast majority 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.

Current Environment

As a global insurance 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, acts of war and banking sector volatility 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. Rising market interest rates have impacted our investment portfolio and derivatives. See “— Results of Operations — Consolidated Results” and “— Results of Operations — Consolidated Results — Adjusted Earnings” 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 10 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 March 31, 2024
Country	Sovereign (1)			Financial Services			Non-Financial Services			Total (2)
	(Dollars in millions)




Israel	153			17			92			262
Peru	84			4			174			262
Ukraine	45			—			3			48
Turkey	21			3			6			30
Russian Federation	21			—			—			21


Total	$	324		$	24		$	275		$	623
Investment grade %	71.5		%	74.6		%	75.8		%	73.5		%

(1)Sovereign includes government and agency.

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(2)The par value, amortized cost, net of ACL, and estimated fair value, net of purchased and written credit default swaps, of these securities were $711 million, $655 million and $435 million, respectively, at March 31, 2024. The notional value and estimated fair value of the net purchased credit default swaps were $192 million and $4 million, respectively, at March 31, 2024.

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. The following tables present 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.

Reconciliation of Net Investment Income under GAAP to Adjusted Net Investment Income


	For the Three Months Ended March 31,
	2024		2023
	(In millions)
Net investment income — GAAP	$	5,436	$	4,645
Investment hedge adjustments	176		264
Unit-linked investment income	(542)		(303)
Other	(2)		—
Adjusted net investment income (1)	$	5,068	$	4,606

(1)See “Financial Measures 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.

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Yield Table


	For the Three Months Ended March 31,
	2024				2023
Asset Class	Yield % (1)		Amount		Yield % (1)		Amount
	(Dollars in millions)
Fixed maturity securities (2), (3)	4.38	%	$	3,200	4.07	%	$	3,028
Net mortgage loans (3)	5.25		1,100		4.92		1,041
Real estate and real estate joint ventures	(2.74)		(90)		(2.10)		(69)
Policy loans	5.56		113		5.35		119
Equity securities	5.48		7		3.17		12
Other limited partnership interests	8.27		301		0.73		26
Cash and short-term investments	5.32		246		5.01		167
Other invested assets	—		348		—		439
Investment income	4.75	%	5,225		4.31	%	4,763
Investment fees and expenses	(0.14)		(157)		(0.14)		(157)
Net investment income including divested businesses (4)	4.61	%	5,068		4.17	%	4,606
Less: net investment income from divested businesses (4)			—				—
Adjusted net investment income			$	5,068			$	4,606

(1)We calculate annualized yields using adjusted net investment income as a percent of average quarterly asset carrying values. Adjusted net investment income excludes realized gains (losses) from sales and disposals, and includes the impact of changes in foreign currency exchange rates. Asset carrying values utilized in the calculation of yields exclude unrecognized unrealized gains (losses), mortgage loans originated for third parties, collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties and contractholder-directed equity securities. 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.

(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 $85 million and $48 million for the three months ended March 31, 2024 and 2023, respectively, and FVO securities asset carrying values 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 net mortgage loans includes prepayment fees and excludes investment income from mortgage loans originated for third parties, respectively. See “— Net Mortgage Loans.”

(4)See “Financial Measures and Segment Accounting Policies” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for a discussion of divested businesses.

See “— Results of Operations — Consolidated Results — Adjusted Earnings” 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).

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Fixed Maturity Securities AFS and Equity Securities

The following table presents public and private fixed maturity securities AFS and equity securities held at:


	March 31, 2024					December 31, 2023
Securities by Type	Estimated Fair Value			% of Total		Estimated Fair Value			% of Total
	(Dollars in millions)
Fixed maturity securities AFS
Publicly traded	$	206,211		74.1	%	$	209,616		74.5	%
Privately-placed	72,198			25.9		71,796			25.5
Total fixed maturity securities AFS	$	278,409		100.0	%	$	281,412		100.0	%
Percentage of cash and invested assets	60.5		%			60.3		%
Equity securities
Publicly traded	$	494		65.9	%	$	506		66.8	%
Privately-held	256			34.1		251			33.2
Total equity securities	$	750		100.0	%	$	757		100.0	%
Percentage of cash and invested assets	0.2		%			0.2		%

See Note 10 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 residential mortgage-backed securities (“RMBS”), asset-backed securities and collateralized loan obligations (collectively, “ABS & CLO”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Products”). See “— Structured Products” for further information.

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 2023 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:


	March 31, 2024
Level	Fixed Maturity Securities AFS				Equity Securities
	(Dollars in millions)
Level 1
Quoted prices in active markets for identical assets	$	15,406	5.5	%	$	435	58.0	%
Level 2
Independent pricing sources	229,178		82.3		59		7.9
Internal matrix pricing or discounted cash flow techniques	—		—		3		0.4
Significant other observable inputs	229,178		82.3		62		8.3
Level 3
Independent pricing sources	24,702		8.9		22		2.9
Internal matrix pricing or discounted cash flow techniques	8,409		3.0		216		28.8
Independent broker quotations	714		0.3		15		2.0
Significant unobservable inputs	33,825		12.2		253		33.7
Total at estimated fair value	$	278,409	100.0	%	$	750	100.0	%

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See Note 12 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 three sectors at March 31, 2024: foreign corporate securities, U.S. corporate securities and ABS & CLO. During the three months ended March 31, 2024, Level 3 fixed maturity securities AFS increased by $878 million, or 2.7%. The increase was driven by purchases in excess of sales, offset by a decrease in estimated fair value recognized in other comprehensive income (loss) and transfers out of Level 3 in excess of transfers into Level 3.

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 2023 Annual Report for further information on the estimates and assumptions that affect the amounts reported above.

Fixed Maturity Securities AFS

See Notes 1 and 10 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.

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 2023 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 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.


		March 31, 2024								December 31, 2023
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	$	209,218	$	(17,091)	$	192,127	69.0	%	$	209,232	$	(14,510)	$	194,722	69.2	%
Baa	2	77,741		(4,374)		73,367		26.4		77,534		(3,854)		73,680		26.2
Subtotal investment grade		286,959		(21,465)		265,494		95.4		286,766		(18,364)		268,402		95.4
Ba	3	10,742		(419)		10,323		3.7		10,694		(395)		10,299		3.7
B	4	2,353		(94)		2,259		0.8		2,491		(120)		2,371		0.8
Caa and lower	5	336		(69)		267		0.1		280		(22)		258		0.1
In or near default	6	120		(54)		66		—		140		(58)		82		—
Subtotal below investment grade		13,551		(636)		12,915		4.6		13,605		(595)		13,010		4.6
Total fixed maturity securities AFS		$	300,510	$	(22,101)	$	278,409	100.0	%	$	300,371	$	(18,959)	$	281,412	100.0	%

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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 the 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)
March 31, 2024
U.S. corporate	$	42,344		$	32,230		$	4,224		$	1,576		$	155		$	24		$	80,553
Foreign corporate	19,072			31,258			3,241			427			20			11			54,029
Foreign government	34,470			5,691			2,371			181			55			25			42,793
U.S. government and agency	31,465			383			—			—			—			—			31,848
RMBS	30,250			775			75			38			2			2			31,142
ABS & CLO	14,392			2,675			335			37			26			3			17,468
Municipals	10,713			200			25			—			—			—			10,938
CMBS	9,421			155			52			—			9			1			9,638
Total fixed maturity securities AFS	$	192,127		$	73,367		$	10,323		$	2,259		$	267		$	66		$	278,409
Percentage of total	69.0		%	26.4		%	3.7		%	0.8		%	0.1		%	—		%	100.0		%

December 31, 2023
U.S. corporate	$	42,892		$	31,942		$	4,093		$	1,602		$	158		$	30		$	80,717
Foreign corporate	19,519			32,144			3,300			458			9			14			55,444
Foreign government	37,024			5,727			2,410			245			52			31			45,489
U.S. government and agency	31,876			376			—			—			—			—			32,252
RMBS	28,381			602			68			40			3			2			29,096
ABS & CLO	14,345			2,548			345			26			26			4			17,294
Municipals	10,974			168			29			—			—			—			11,171
CMBS	9,711			173			54			—			10			1			9,949
Total fixed maturity securities AFS	$	194,722		$	73,680		$	10,299		$	2,371		$	258		$	82		$	281,412
Percentage of total	69.2		%	26.2		%	3.7		%	0.8		%	0.1		%	—		%	100.0		%

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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 March 31, 2024 or December 31, 2023. The top 10 holdings comprised 1% of total investments at both March 31, 2024 and December 31, 2023. The table below presents our U.S. and foreign corporate securities portfolios by industry at:


	March 31, 2024				December 31, 2023
Industry	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Finance	$	31,823	23.6	%	$	32,142	23.5	%
Consumer (cyclical and non-cyclical)	27,917		20.7		28,391		20.9
Utility	24,165		18.0		24,058		17.7
Industrial (basic, capital goods and other)	14,134		10.5		14,240		10.5
Transportation	11,816		8.8		12,132		8.9
Communications	9,931		7.4		10,048		7.4
Energy	7,619		5.7		7,917		5.8
Technology	4,210		3.1		4,262		3.1
Other	2,967		2.2		2,971		2.2
Total	$	134,582	100.0	%	$	136,161	100.0	%

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 $58.2 billion and $56.3 billion of Structured Products, at estimated fair value, at March 31, 2024 and December 31, 2023, 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:


	March 31, 2024						December 31, 2023
	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	$	18,607	59.7	%	$	(1,364)	$	16,704	57.4	%	$	(1,268)
Pass-through mortgage-backed securities	12,535		40.3		(1,291)		12,392		42.6		(1,114)
Total RMBS	$	31,142	100.0	%	$	(2,655)	$	29,096	100.0	%	$	(2,382)
Risk profile
Agency	$	19,507	62.5	%	$	(1,954)	$	18,472	63.5	%	$	(1,650)
Non-Agency
Prime and prime investor	5,162		16.6		(424)		4,827		16.6		(435)
NQM and Alt-A	1,698		5.5		(63)		1,760		6.0		(75)
Reperforming and sub-prime	3,046		9.8		(176)		2,622		9.0		(167)
Other (1)	1,729		5.6		(38)		1,415		4.9		(55)
Subtotal Non-Agency	11,635		37.5	%	(701)		10,624		36.5	%	(732)
Total RMBS	$	31,142	100.0	%	$	(2,655)	$	29,096	100.0	%	$	(2,382)
Ratings profile
Rated Aaa and Aa	$	27,000	86.7	%			$	25,307	87.0	%
Designated NAIC 1	$	30,248	97.1	%			$	28,384	97.6	%

(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 2023 Annual Report for further information about collateralized mortgage obligations and pass-through mortgage-backed securities, as well as agency, prime, prime investor, non-qualified residential mortgage (“NQM”), alternative (“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 the vast majority 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 the vast majority 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 & 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:


	March 31, 2024						December 31, 2023
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
ABS
Collateral type
Vehicle and equipment loans	$	1,693	9.8	%	$	(14)	$	1,605	9.2	%	$	(23)
Digital infrastructure	1,452		8.3		(64)		1,376		8.0		(77)
Consumer loans	894		5.1		(67)		944		5.5		(78)
Credit card	899		5.1		(6)		904		5.2		(4)

Franchise	883		5.1		(55)		852		4.9		(65)
Student loans	689		3.9		(52)		702		4.1		(58)
Other (1)	2,995		17.1		(223)		3,038		17.6		(241)
Total ABS	$	9,505	54.4	%	$	(481)	$	9,421	54.5	%	$	(546)
CLO (2)	$	7,963	45.6	%	$	(15)	$	7,873	45.5	%	$	(63)
Total ABS & CLO	$	17,468	100.0	%	$	(496)	$	17,294	100.0	%	$	(609)

ABS ratings profile
Rated Aaa and Aa	$	3,851	40.5	%			$	3,970	42.1	%
Designated NAIC 1	$	7,174	75.5	%			$	7,227	76.7	%
CLO ratings profile
Rated Aaa and Aa	$	5,997	75.3	%			$	5,913	75.1	%
Designated NAIC 1	$	7,209	90.5	%			$	7,118	90.4	%
ABS & CLO ratings profile
Rated Aaa and Aa	$	9,848	56.4	%			$	9,883	57.1	%
Designated NAIC 1	$	14,383	82.3	%			$	14,345	82.9	%

(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:


	March 31, 2024						December 31, 2023
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
Collateral type
Conduit	$	5,719	59.4	%	$	(452)	$	6,102	61.3	%	$	(643)
Single asset and single borrower	1,995		20.7		(106)		1,997		20.1		(136)
Agency	716		7.4		(106)		735		7.4		(93)
Commercial real estate collateralized loan obligations	413		4.3		(5)		437		4.4		(9)
Other	795		8.2		12		678		6.8		(7)
Total CMBS	$	9,638	100.0	%	$	(657)	$	9,949	100.0	%	$	(888)
Ratings profile
Rated Aaa and Aa	$	7,859	81.5	%			$	8,262	83.0	%
Designated NAIC 1	$	9,418	97.7	%			$	9,710	97.6	%

Evaluation of Fixed Maturity Securities AFS for Credit Loss, Rollforward of Allowance for Credit Loss and Credit Loss on Fixed Maturity Securities AFS Recognized in Earnings

See Note 10 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 gains (losses) on sales and disposals of fixed maturity securities AFS at and for the three months ended March 31, 2024.

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 $14.0 billion and $13.8 billion at March 31, 2024 and December 31, 2023, respectively, including a portion that may require the immediate return of cash collateral we hold. See Note 10 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 and Note 11 of the Notes to the Consolidated Financial Statements included in the 2023 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 $642 million and $362 million at March 31, 2024 and December 31, 2023, 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 $666 million and $371 million at March 31, 2024 and December 31, 2023, respectively.

Net Mortgage Loans

Our mortgage loan investments are principally collateralized by commercial, agricultural and residential properties. The Company originates and acquires mortgage loans and, in certain cases, transfers proportional rights to cash flows of certain mortgage loans to third parties under participation agreements, which are recorded as secured borrowings. The net mortgage loan information presented herein does not include mortgage loans originated for third parties and the related ACL. See Notes 1 and 10 of the Notes to the Interim Condensed Consolidated Financial Statements for further information.

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Net mortgage loans carried at amortized cost and the related ACL are summarized as follows at:


	March 31, 2024									December 31, 2023
Portfolio Segment		Amortized Cost (1)		% of Total		ACL (1)		ACL as % of Amortized Cost		Amortized Cost (1)		% of Total		ACL (1)		ACL as % of Amortized Cost
		(Dollars in millions)
Commercial		$	51,527	61.2	%	$	385	0.7	%	$	52,111	61.5	%	$	295	0.6	%
Agricultural		19,461		23.1		187		1.0	%	19,559		23.1		171		0.9	%
Residential		13,201		15.7		165		1.2	%	13,096		15.4		182		1.4	%
Total		$	84,189	100.0	%	$	737	0.9	%	$	84,766	100.0	%	$	648	0.8	%

(1)Does not include mortgage loans originated for third parties of $8.1 billion at amortized cost ($7.8 billion commercial and $251 million agricultural) and the related ACL of $77 million at March 31, 2024, and $8.5 billion at amortized cost ($8.2 billion commercial and $246 million agricultural) and the related ACL of $73 million at December 31, 2023.

We diversify our mortgage loan investments by both geographic region and property type to reduce the risk of concentration. Of our net commercial and agricultural mortgage loans carried at amortized cost, 86% are collateralized by properties located in the U.S., with the remaining 14% collateralized by properties located primarily in Mexico, the U.K. and Australia at March 31, 2024. The carrying values of our net commercial and agricultural mortgage loans collateralized by properties located in California, New York and Texas were 15%, 9% and 6%, respectively, of total net commercial and agricultural mortgage loans at March 31, 2024. 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 March 31, 2024. The carrying values of our residential mortgage loans located in California, Florida, and New York were 33%, 11%, and 8%, respectively, of total residential mortgage loans at March 31, 2024.

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Net Commercial Mortgage Loans by Geographic Region and Property Type. Net 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:


	March 31, 2024				December 31, 2023
	Amount		% of Total		Amount		% of Total
	(Dollars in millions)
Region
Pacific	$	9,036	17.5	%	$	9,016	17.3	%
Non-U.S.	8,453		16.4		8,933		17.1
Middle Atlantic	7,430		14.4		7,477		14.3
South Atlantic	6,802		13.2		6,637		12.7
West South Central	3,502		6.8		3,472		6.7
New England	2,821		5.5		2,859		5.5
Mountain	2,192		4.3		2,193		4.2
East North Central	1,701		3.3		1,822		3.5
East South Central	653		1.3		654		1.3
West North Central	644		1.2		613		1.2
Multi-Region and Other	8,293		16.1		8,435		16.2
Total amortized cost	$	51,527	100.0	%	$	52,111	100.0	%
Less: ACL	385				295
Carrying value, net of ACL	$	51,142			$	51,816
Property Type
Office	$	19,369	37.6	%	$	19,651	37.7	%
Apartment	11,353		22.0		11,974		23.0
Retail	7,371		14.3		7,218		13.9
Industrial	5,315		10.3		5,275		10.1
Single Family Rental	4,823		9.4		4,728		9.1
Hotel	3,199		6.2		3,140		6.0
Other	97		0.2		125		0.2
Total amortized cost	$	51,527	100.0	%	$	52,111	100.0	%
Less: ACL	385				295
Carrying value, net of ACL	$	51,142			$	51,816

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.

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 net mortgage loans by credit quality indicator. See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for further information 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 Notes 1 and 10 of the Notes to the Interim Condensed Consolidated Financial Statements for information on our evaluation of residential mortgage loan investments and related ACL methodology.

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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 net commercial mortgage loans, our average LTV ratio was 65% and 64% at March 31, 2024 and December 31, 2023, respectively, and our average DSCR was 2.2x and 2.3x at March 31, 2024 and December 31, 2023, respectively. 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 net agricultural mortgage loans, our average LTV ratio was 46% and 47% at March 31, 2024 and December 31, 2023, respectively. The values utilized in calculating our agricultural mortgage loan investments LTV ratio are developed in connection with the ongoing review of our portfolio and are routinely updated.

The distribution of our net commercial mortgage loan portfolios totaling $51.5 billion at amortized cost at March 31, 2024 by key credit quality indicators of LTV and DSCR was as follows:




	March 31, 2024
	DSCR
LTV	> 1.2x		1.0-1.2x		< 1.0x		Total
<65%	47.7	%	2.5	%	1.2	%	51.4	%
65% - 75%	24.4	%	1.8	%	1.0	%	27.2	%
76% - 80%	5.2	%	0.9	%	0.6	%	6.7	%
>80%	8.9	%	3.3	%	2.5	%	14.7	%
Total	86.2	%	8.5	%	5.3	%	100.0	%

The distribution of our net agricultural mortgage loan portfolios totaling $19.5 billion at amortized cost at March 31, 2024 by the key credit quality indicator of LTV was as follows:





	March 31, 2024

LTV	Total
<65%	92.8	%
65% - 75%	6.4	%
76% - 80%	—	%
>80%	0.8	%
Total	100.0	%

Mortgage Loan Allowance for Credit Loss. 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 Notes 1 and 10 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.

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Real Estate and Real Estate Joint Ventures

Our real estate investments are comprised of wholly-owned properties, and interests in both real estate joint ventures and real estate funds which invest in a wide variety of properties and property types, including single and multi-property projects, and are broadly diversified across multiple property types and geographies.

The carrying value of our real estate investments was $13.0 billion and $13.3 billion at March 31, 2024 and December 31, 2023, respectively, or 2.8% and 2.9% of cash and invested assets, at March 31, 2024 and December 31, 2023, 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 $4.5 billion unrealized gain position at March 31, 2024.

We continuously monitor and assess our real estate investments for impairment when facts and circumstances indicate that the real estate may be impaired. There were no impairments (losses) recognized on our real estate investments for either the three months ended March 31, 2024 or 2023.

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 10 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.

Other Limited Partnership Interests

Other limited partnership interests are comprised of investments in private funds, including private equity funds and hedge funds. At March 31, 2024 and December 31, 2023, the carrying value of other limited partnership interests was $14.3 billion and $14.8 billion, which included $25 million and $27 million of hedge funds, respectively. Other limited partnership interests were 3.1% and 3.2% of cash and invested assets at March 31, 2024 and December 31, 2023, 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.

Other Invested Assets

The following table presents the carrying value of our other invested assets by type at:


	March 31, 2024					December 31, 2023
Asset Type	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Freestanding derivatives with positive estimated fair values	$	8,291		45.8	%	$	8,737		48.0	%
Direct financing leases	1,178			6.5		1,304			7.2
Annuities funding structured settlement claims	1,256			6.9		1,256			6.9
Operating joint ventures (1)	1,406			7.8		1,142			6.3
Company-owned life insurance policies	1,048			5.8		1,036			5.7
Tax credit and renewable energy partnerships	781			4.3		1,034			5.7
FHLBNY common stock	714			3.9		714			3.9
Leveraged leases	665			3.7		689			3.8
Funds withheld	447			2.5		436			2.4
Other	2,311			12.8		1,854			10.1
Total	$	18,097		100.0	%	$	18,202		100.0	%
Percentage of cash and invested assets	3.9		%			3.9		%

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(1)See Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements for information regarding the Company’s pending disposition of MetLife Malaysia.

See Notes 1, 11 and 12 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report for information regarding freestanding derivatives with positive estimated fair values, tax credit and renewable energy partnerships, annuities funding structured settlement claims, direct financing and leveraged leases, operating joint ventures, Federal Home Loan Bank of New York (“FHLBNY”) common stock, 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 partnerships, bank credit facilities, bridge loans and private corporate bond investments. See Note 19 of the Notes to the Interim Condensed Consolidated Financial Statements for the amount of our unfunded investment commitments at March 31, 2024 and December 31, 2023. See “Net Investment Income” and “Net Investment Gains (Losses)” in Note 10 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,” “— Net Mortgage Loans,” “— Real Estate and Real Estate Joint Ventures” and “— Other Limited Partnership Interests.”

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 11 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 March 31, 2024 and December 31, 2023.
The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedge relationships for the three months ended March 31, 2024 and 2023.

See “— Summary of Critical Accounting Estimates — Derivatives” in the 2023 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 2023 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

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 13 (senior notes issuance);

◦Note 14 (preferred stock, including the calculation and timing of dividend payments, and MetLife, Inc.’s common stock repurchase authorizations); and

◦Note 20 (common stock repurchase authorization and senior notes redemption).

Additionally, this discussion should be read in conjunction with the following sections included in the 2023 Annual Report for additional information regarding the topics noted below:

Notes to the Consolidated Financial Statements: (i) Note 3 (dispositions); (ii) Note 5 (funding agreements, reported in policyholder account balances (“PABs”), and the related pledged collateral); (iii) Note 16 (long-term debt, commercial paper and other short-term debt, credit and committed facilities, and debt and facility covenants); (iv) Note 17 (collateral financing arrangement and the related pledged collateral); (v) Note 18 (junior subordinated debt securities and the related replacement capital covenant); and (vi) Note 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: (i) Note 4 (affiliated long-term debt); and (ii) Note 5 (support agreements).
Risk Factors: (i) “— Capital Risks”; (ii) “— 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”; (iii) “— 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”; and (iv) “— 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.”

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.”

Liquidity Management

Based upon the strength of our franchise, diversification of our 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 2023 Annual Report.

Short-term Liquidity and Liquid Assets

An integral part of our liquidity management includes managing our level of liquid assets. At March 31, 2024 and December 31, 2023, our short-term liquidity position was $18.1 billion and $19.2 billion, respectively, and liquid assets were $176.1 billion and $182.6 billion, respectively.

Short-term liquidity includes cash and cash equivalents and short-term investments, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, repurchase agreements, derivatives, and secured borrowings, as well as amounts held in the closed block.

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Liquid assets include short-term liquidity and publicly traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include 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

Liquidity refers to the ability to generate adequate amounts of cash to meet our needs. 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:


	Three Months Ended March 31,
	2024		2023
	(In millions)
Sources:
Operating activities, net	$	2,328	$	2,026
Net change in policyholder account balances	1,071		78
Net change in payables for collateral under securities loaned and other transactions	50		—
Long-term debt issued	758		1,000
Derivatives with certain financing elements and other derivative-related transactions, net	—		60
Effect of change in foreign currency exchange rates on cash and cash equivalents	—		34
Total sources	4,207		3,198
Uses:
Investing activities, net	2,627		1,504
Net change in payables for collateral under securities loaned and other transactions	—		1,066
Long-term debt repaid	264		1,012
Collateral financing arrangement repaid	47		12
Derivatives with certain financing elements and other derivative-related transactions, net	55		—
Net change in mortgage loan secured financing	119		—
Treasury stock acquired in connection with share repurchases	1,172		780
Dividends on preferred stock	67		66
Dividends on common stock	377		389
Other, net	39		108
Effect of change in foreign currency exchange rates on cash and cash equivalents	239		—
Total uses	5,006		4,937
Net increase (decrease) in cash and cash equivalents	$	(799)	$	(1,739)

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

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) long-term debt; collateral financing arrangement; and junior subordinated debt securities; (iv) PABs, which includes funding agreements; (v) credit and committed facilities; (vi) shelf registration statement, which permits the issuance of public debt, equity and hybrid securities and provides for automatic effectiveness upon filing and has no stated issuance capacity; and (vii) dispositions. Additional details regarding certain of our primary sources of liquidity and capital are included in the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2023 Annual Report referenced in “— Overview” and are discussed below.

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 March 31, 2024, 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 March 31, 2024 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	$	297	$	—	$	2,703

Committed Facilities:
MetLife Reinsurance Company of Vermont and MetLife, Inc.	$	350	$	350	$	—	$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.	2,896		2,497		—		399
Total Committed Facilities	$	3,246	$	2,847	$	—	$	399

The following table summarizes our outstanding debt at:


	March 31, 2024		December 31, 2023
	(In millions)
Short-term debt (1)	$	127	$	119
Long-term debt (2)	$	15,972	$	15,548
Collateral financing arrangement	$	590	$	637
Junior subordinated debt securities	$	3,162	$	3,161

(1)Includes $127 million and $119 million of short-term debt that is non-recourse to MetLife, Inc. and Metropolitan Life Insurance Company (“MLIC”), subject to customary exceptions, at March 31, 2024 and December 31, 2023, respectively. Certain subsidiaries have pledged assets to secure this debt.

(2)Includes $469 million and $442 million of long-term debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at March 31, 2024 and December 31, 2023, respectively. Certain investment subsidiaries have pledged assets to secure this debt.

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 March 31, 2024.

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Liquidity and Capital Uses

The primary uses of liquidity and capital include: (i) common stock repurchases; (ii) dividends on common and preferred stock; (iii) preferred stock redemptions; (iv) debt repayments; (v) debt repurchases, redemptions and exchanges; (vi) contractual obligations, including PABs and insurance liabilities; (vii) pledged collateral; (viii) securities lending transactions, repurchase agreements and third-party custodian administered programs; (ix) mortgage loan secured financing; and (x) acquisitions. Additional details regarding certain of our primary uses of liquidity and capital are included in the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2023 Annual Report referenced in “— Overview” and are discussed below.

Common Stock Repurchases and Dividends

Among other factors that could restrict MetLife, Inc.’s ability to repurchase or pay dividends on its common stock are the “dividend stopper” provisions in MetLife, Inc.’s preferred stock and junior subordinated debentures. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity and Capital Uses — ‘Dividend Stopper’ Provisions in MetLife’s Preferred Stock and Junior Subordinated Debentures” included in the 2023 Annual Report.

For the three months ended March 31, 2024 and 2023, MetLife, Inc. paid dividends on its preferred stock of $67 million and $66 million, respectively. For the three months ended March 31, 2024 and 2023, MetLife, Inc. paid dividends on its common stock of $377 million and $389 million, respectively.

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.

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 11 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 — Net 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 the MetLife Holdings segment, which includes individual annuities, lapses and surrenders tend to occur in the normal course of business. For the three months ended March 31, 2024 and 2023, general account surrenders and withdrawals from annuity products were $458 billion and $531 million, respectively. 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 March 31, 2024 there were funding agreements totaling $133 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 2023 Annual Report.

Liquid Assets

At both March 31, 2024 and December 31, 2023, MetLife holding companies had $5.2 billion in liquid assets. Of these amounts, $4.0 billion and $4.2 billion were held by MetLife, Inc. and $1.2 billion and $1.0 billion were held by other MetLife holding companies at March 31, 2024 and December 31, 2023, respectively. Liquid assets include cash and cash equivalents, short-term investments and publicly traded securities, excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with derivatives and the collateral financing arrangement.

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 — Dividends from Subsidiaries.”

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Consolidated Company Outlook” included in the 2023 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 2023 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

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; (iii) collateral financing arrangement and junior subordinated debentures; (iv) credit and committed facilities; and (v) dispositions. Additional details regarding certain of MetLife, Inc.’s primary sources of liquidity and capital are included in “— The Company — Liquidity and Capital Sources,” the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2023 Annual Report referenced in “— Overview” and are discussed below.

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.

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The table below sets forth the dividends permitted to be paid in 2024 by MetLife, Inc.’s primary U.S. insurance subsidiaries without insurance regulatory approval and the actual dividends paid for the three months ended March 31, 2024:


Company	Paid (1)		Permitted Without Approval (2)
	(In millions)
Metropolitan Life Insurance Company	$	1,200	$	3,476
American Life Insurance Company	$	—	$	945
Metropolitan Tower Life Insurance Company	$	—	$	373

(1)Reflects all amounts paid, including those where regulatory approval was obtained as required.

(2)Reflects dividend amounts that may be paid during 2024 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 2024, some or all of such dividends may require regulatory approval.

In addition to the amounts presented in the table above, for the three months ended March 31, 2024, MetLife, Inc. also received from certain other subsidiaries cash dividends of $19 million, as well as cash returns of capital of $6 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:


	March 31, 2024		December 31, 2023
	(In millions)
Long-term debt — unaffiliated	$	15,177	$	14,516
Long-term debt — affiliated	$	1,493	$	1,585
Junior subordinated debt securities	$	2,468	$	2,468

Liquidity and Capital Uses

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) common stock, preferred stock and debt repurchases and/or redemptions; (v) payment of general operating expenses; (vi) support agreements; and (vii) acquisitions. Additional details regarding certain of MetLife, Inc.’s primary uses of liquidity and capital are included in “— The Company — Liquidity and Capital Uses,” the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2023 Annual Report referenced in “— Overview” and are discussed below.

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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.

Affiliated Capital and Debt Transactions

For the three months ended March 31, 2024 and 2023, MetLife, Inc. invested a net amount of $111 million and $173 million, respectively, in various subsidiaries.

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 $555 million and $305 million at March 31, 2024 and December 31, 2023, respectively.

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 the understanding for the Company and our investors 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 of these 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 most recent period and applied to the comparable prior period (“constant currency basis”).

Reconciliations of these non-GAAP financial measures to the most directly comparable historical 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.

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

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adjusted earnings available to common shareholders on a constant currency basis.

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also our GAAP measures of segment performance. Adjusted earnings and other financial 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 other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends. For additional information relating to adjusted earnings, see “Financial Measures and Segment Accounting Policies” 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 common stockholders’ equity, excluding accumulated other comprehensive income (“AOCI”) other than foreign currency translation adjustments (“FCTA”), is defined as total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI, 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 common stockholders’ equity.
Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding AOCI other than FCTA.
Allocated equity is the portion of MetLife, Inc.’s 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 2023 Annual Report. Allocated equity excludes the impact of AOCI other than FCTA.

The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses.

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: adjusted 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: adjusted direct expenses excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.

The following additional information is relevant to an understanding of our performance results and outlook:

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 Latin America, Asia and EMEA segments are on a constant currency basis.
Near-term represents one to three years.

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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 MetLife’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.
For further detail relating to total adjusted revenues and total adjusted expenses, as set forth in “— Results of Operations — Segment Results and Corporate & Other,” see total revenues and total expenses, respectively, within the tables in “Financial Measures and Segment Accounting Policies” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements.

Risk Management

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in the 2023 Annual Report for information on our risk management.

Subsequent Events

See Note 20 of the Notes to the Interim Condensed Consolidated Financial Statements.

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