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			94
Industry Trends			94
Summary of Critical Accounting Estimates			95
Acquisitions and Dispositions			96
Business Overview & Strategy			96
Results of Operations			97
Investments			110
Derivatives			126
Liquidity and Capital Resources			127
Adopted Accounting Pronouncements			134
Future Adoption of Accounting Pronouncements			134
Non-GAAP and Other Financial Disclosures			134
Risk Management			137
Subsequent Events			137

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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, 2024 (the “2024 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, banking sector volatility and employment and work policies of the federal government. We are also monitoring the imposition of tariffs, sanctions or other barriers to international trade, changes to international trade agreements, and their potential impacts on our business, results of operations and financial condition. See “— Investments — Current Environment,” as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of Market Interest Rates — Effects of Inflation” in the 2024 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 Federal Open Market Committee took various actions in 2024 to promote economic stability, including lowering interest rates during the second half of the year. While rates have remained steady in 2025, labor market conditions, inflation and financial and international developments, as well as other factors, could result in policy adjustments later this year. The European Central Bank and Bank of England have also recently lowered interest rates, but forecasts for the remainder of 2025 are uncertain due to risks to economic growth, global trade and political change. The Bank of Japan raised interest rates in January 2025, taking the policy rate to its highest level since 2008.

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 2024 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 2024 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 2024 Annual Report, as amended or supplemented here.

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

In 2021, the U.S. Department of Labor’s (the “DOL”) final version of the prohibited transaction exemption (“PTE”) 2020-02 went into effect, which allows investment advice fiduciaries to receive compensation without violating the Employee Retirement Income Security Act of 1974 (“ERISA”), subject to impartial conduct standards and disclosure obligations aligned with U.S. Securities and Exchange Commission (“SEC”) rules. In the preamble to PTE 2020-02, the DOL also provided its interpretation of the five-part test used to determine whether a person is acting as an ERISA investment advice fiduciary. In April 2024, DOL finalized and published a regulation to change the definition of “fiduciary” for purposes of ERISA and parallel provisions of the Internal Revenue Code of 1986, as amended, when a financial professional, including an insurance producer, provides investment advice, and to amend various existing PTEs that financial professionals rely on when making recommendations. Shortly thereafter, these changes were challenged in court, and in July 2024, two federal district courts entered separate stays of the effective date of the new regulation regarding the definition of “fiduciary” and the amendments to the PTEs, pending further orders of the courts. The DOL initially appealed these stay orders but has since indicated that it no longer intends to pursue those appeals and, instead, will revisit and re-evaluate the regulation and PTE amendments. Accordingly, it is unclear when, or whether, the regulation and PTE amendments will take effect.

In March 2025, Chile enacted the pension reform bill approved by the Chilean Congress in January 2025. This reform introduces structural changes to the pension system, including mandatory bidding of 10% of pension fund administrator customer portfolios every two years beginning in 2028 and the creation of a state-owned entity to manage new pay-as-you-go-contributions. The impact of this reform on our Chilean pension business continues to be evaluated, and will depend on specific regulations that are expected to be issued during the next two years.

Management of Climate Risk and ESG

In March 2025, the SEC voted to end its defense of final rules that it had adopted in March 2024 requiring registrants to provide additional climate-related information in their registration statements and annual reports, including in their financial statements.

Derivatives Regulation and Clearing of Treasury Securities

In 2023, the SEC adopted rules to require that covered clearing agencies have policies and procedures reasonably designed to require every direct participant of the agency to submit for clearing eligible secondary market transactions in U.S. Treasury securities. Following a February 25, 2025 extension by the SEC, the rule effectively requires such participants to clear eligible cash transactions in U.S. Treasury securities beginning on December 31, 2026, and clear eligible repurchase and reverse repurchase transactions in U.S. Treasury securities beginning on June 30, 2027. As a result, certain transactions between such participants and us will be required to be cleared. The rule’s potential effect on the U.S. Treasury markets is uncertain.

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:

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(i)future policy benefit liabilities, 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 2024 Annual Report.

Acquisitions and Dispositions

Pending Acquisition of PineBridge Investments

For information regarding the Company’s pending acquisition of PineBridge Investments, a global asset manager, see Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.

Business Overview & Strategy

In the fourth quarter of 2024, MetLife and General Atlantic, L.P. (“General Atlantic”) announced the formation of a life and annuity reinsurance company, Chariot Reinsurance, Ltd. (“Chariot Re”), which is expected to launch in the first half of 2025, subject to regulatory approvals and other closing conditions. MetLife will own an equity interest in Chariot Re. MetLife is targeting ceding a block of liabilities composed of structured settlement annuity contracts and group annuity contracts associated with pension risk transfers to Chariot Re. MetLife Investment Management and General Atlantic will exclusively provide global investment management services to Chariot Re.

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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. MetLife is organized into six segments: Group Benefits; Retirement and Income Solutions (“RIS”); Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. In addition, the Company reports 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 $879 million for the three months ended March 31, 2025, compared to $800 million for the three months ended March 31, 2024.
Adjusted earnings available to common shareholders of $1.3 billion for both the three months ended March 31, 2025 and March 31, 2024.

Consolidated Results


	Three Months Ended March 31,
		2025		2024
		(In millions)
Revenues
Premiums		$	11,723	$	10,053
Universal life and investment-type product policy fees		1,229		1,248
Net investment income		4,885		5,436
Other revenues		687		674
Net investment gains (losses)		(387)		(375)
Net derivative gains (losses)		432		(979)
Total revenues		18,569		16,057
Expenses
Policyholder benefits and claims and policyholder dividends		11,950		10,221
Policyholder liability remeasurement (gains) losses		(31)		(22)
Market risk benefit remeasurement (gains) losses		299		(694)
Interest credited to policyholder account balances		1,647		2,290
Amortization of deferred policy acquisition costs, value of business acquired and negative value of business acquired		519		502
Interest expense on debt		258		264
Other expenses, net of capitalization of deferred policy acquisition costs		2,573		2,451
Total expenses		17,215		15,012
Income (loss) before provision for income tax		1,354		1,045
Provision for income tax expense (benefit)		404		170
Net income (loss)		950		875
Less: Net income (loss) attributable to noncontrolling interests		5		8
Net income (loss) attributable to MetLife, Inc.		945		867
Less: Preferred stock dividends		66		67
Net income (loss) available to MetLife, Inc.’s common shareholders		$	879	$	800

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Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $79 million primarily due to the following:

Net Investment Gains (Losses)(1) - Unfavorable change of $12 million ($9 million, net of income tax):

Higher losses on sales of fixed maturity securities
Higher increase to the allowance for credit loss on mortgage loans
Gains on sales of real estate investments in the prior period

Partially offset by:

Gains on foreign currency transactions in the current period compared to losses in the prior period

Net Derivative Gains (Losses)(2) - Favorable change of $1.4 billion ($1.1 billion, net of income tax)(3):

The U.S. dollar weakened against the Japanese yen in the current period compared to strengthened in the prior period - favorable impact to the estimated fair value of sell-U.S. dollar currency forwards
Key equity indexes decreased in the current period compared to increased in the prior period - favorable impact to the estimated fair value of short futures, long put options and total rate of return swaps
Long-term interest rates decreased in the current period compared to increased in the prior period - favorable impact to the estimated fair value of receiver forwards, options and swaps

Market Risk Benefit Remeasurement (Gains) Losses(4) - Unfavorable change of $993 million ($784 million, net of income tax):

Long-term interest rates decreased in the current period compared to increased in the prior period
Key equity indexes decreased in the current period compared to increased in the prior period

Adjusted Earnings Available to Common Shareholders(5) - Favorable change of $15 million. See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.”

Taxes - Unfavorable change in effective tax rate - 30% in the current period compared to 16% in the prior period:

Current period effective tax rate on income before provision for income tax was 30% compared to 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

◦Non-deductible losses

◦Tax rate change in Japan

Partially offset by tax benefits from:

◦Non-taxable investment income

◦Low income housing and other tax credits, partially offset by the impact of tax equity investments

◦Corporate tax deduction for stock compensation

Prior period effective tax rate on income before provision for income tax was 16% compared to 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

◦Corporate tax deduction for stock compensation

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

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(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.

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

(5)See “— Non-GAAP and Other Financial Disclosures” for information regarding adjusted earnings and related measures.

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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, 2025


		Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total
		(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders		$	300	$	126	$	489	$	228	$	75	$	(56)	$	(283)	$	879
Add: Preferred stock dividends		—		—		—		—		—		—		66		66
Add: Net income (loss) attributable to noncontrolling interests		—		—		—		2		1		—		2		5
Net income (loss)		300		126		489		230		76		(56)		(215)		950
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
	Net investment gains (losses)	(25)		(210)		34		3		(3)		(59)		(127)		(387)
	Net derivative gains (losses)	(43)		(45)		170		158		(11)		116		87		432
	Premiums	4		—		—		—		—		—		—		4
	Universal life and investment-type product policy fees	—		—		—		—		—		—		—		—
	Net investment income	(17)		(17)		(140)		(41)		(96)		(47)		30		(328)
	Other revenues	—		(19)		—		—		—		36		4		21
Expenses:
	Policyholder benefits and claims and policyholder dividends	(1)		(24)		44		(67)		—		16		—		(32)
	Policyholder liability remeasurement (gains) losses	—		—		—		—		—		—		—		—
	Market risk benefit remeasurement gains (losses)	—		1		(1)		—		1		(301)		1		(299)
	Interest credited to policyholder account balances ("PABs")	—		—		142		(41)		96		(27)		—		170
	Capitalization of deferred policy acquisition costs (" DAC")	—		—		—		—		—		—		—		—
	Amortization of DAC, value of business acquired ("VOBA") and negative VOBA	—		—		—		—		—		—		—		—
	Interest expense on debt	—		—		—		—		—		—		—		—
	Other expenses	(3)		(35)		—		2		(1)		—		(32)		(69)
	Goodwill impairment	—		—		—		—		—		—		—		—
	Provision for income tax (expense) benefit	18		74		(134)		(2)		7		56		4		23
Adjusted earnings		$	367	$	401	$	374	$	218	$	83	$	154	$	(182)	$	1,415
Less: Preferred stock dividends		—		—		—		—		—		—		66		66
Adjusted earnings available to common shareholders		$	367	$	401	$	374	$	218	$	83	$	154	$	(248)	$	1,349

Premiums, fees and other revenues		$	6,434	$	2,411	$	1,681	$	1,513	$	668	$	816	$	116	$	13,639
Less: adjustments to premiums, fees and other revenues		4		(19)		—		—		—		36		4		25
Adjusted premiums, fees and other revenues		$	6,430	$	2,430	$	1,681	$	1,513	$	668	$	780	$	112	$	13,614

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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 PABs	—		1		(236)		(40)		(262)		(26)		—		(563)
	Capitalization of DAC	—		—		—		—		—		—		—		—
	Amortization of DAC, VOBA and negative VOBA	—		—		—		—		—		—		—		—
	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		$	284	$	399	$	423	$	233	$	77	$	159	$	(241)	$	1,334

Adjusted earnings available to common shareholders on a constant currency basis (1)		$	284	$	399	$	411	$	204	$	73	$	159	$	(241)	$	1,289

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

Adjusted premiums, fees and other revenues on a constant currency basis (1)		$	6,330	$	813	$	1,682	$	1,322	$	594	$	841	$	104	$	11,686

(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 Available to Common Shareholders

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $1.7 billion, or 14%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $1.9 billion, or 16%, compared to the prior period primarily due to growth in the pension risk transfer business in the RIS segment.


	Three Months Ended March 31,
		2025		2024
		(In millions)
Group Benefits		$	367	$	284
RIS		401		399
Asia		374		423
Latin America		218		233
EMEA		83		77
MetLife Holdings		154		159
Corporate & Other		(248)		(241)
Adjusted earnings available to common shareholders		$	1,349	$	1,334

Adjusted earnings available to common shareholders on a constant currency basis		$	1,349	$	1,289

Adjusted premiums, fees and other revenues		$	13,614	$	11,948
Adjusted premiums, fees and other revenues on a constant currency basis		$	13,614	$	11,686

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

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 $15 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings available to common shareholders by $45 million, primarily in the Latin America and Asia segments

Market Factors - Decreased adjusted earnings available to common shareholders by $13 million:

Higher interest credited expenses - higher average interest crediting rates on investment-type and certain insurance products, primarily in the RIS and Asia segments, as well as growth on long-duration products in the RIS segment
Favorable change in market-sensitive policyholder liabilities in the Asia segment in the prior period

Substantially offset by:

Recurring investment income increased - positive flows from pension risk transfer transactions and funding agreement issuances in the RIS segment and higher income on real estate investments, partially offset by lower yields on fixed income securities and lower income on derivatives
Variable investment income increased - higher returns on real estate funds, partially offset by lower returns on private equity funds

Volume Growth - Increased adjusted earnings available to common shareholders by $40 million:

Higher average invested assets, primarily in the Asia and Latin America segments
Higher sales and business growth in the EMEA and Latin America segments

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Partially offset by:

Increase in interest credited expenses on long-duration products, primarily in the Asia and Latin America segments

Underwriting and Other Insurance Adjustments - Increased adjusted earnings available to common shareholders by $74 million:

Favorable mortality results, primarily in the Group Benefits segment, partially offset by lower surrender charges in the Asia segment
Favorable change from refinements to certain insurance liabilities in both periods, primarily in the Group Benefits and MetLife Holdings segments, partially offset by favorable refinements to certain insurance liabilities in the Latin America segment in the prior period

Expenses - Decreased adjusted earnings available to common shareholders by $37 million:

Higher legal plan utilization in the Group Benefits segment
Higher direct expenses in the Group Benefits, Asia and EMEA segments

Partially offset by:

Lower corporate-related expenses and lower litigation reserves 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, 2025 increased $100 million, or 2%, compared to the prior period, primarily driven by growth in both core and voluntary products, partially offset by a decrease in premiums related to our participating life contracts, which can fluctuate with claims experience.


	Three Months Ended March 31,
		2025		2024
		(In millions)

















Adjusted earnings		$	367	$	284

Adjusted premiums, fees and other revenues		$	6,430	$	6,330

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

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

Adjusted Earnings - Increased $83 million primarily due to the following business drivers:

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $98 million:

Favorable mortality - primarily due to lower claims incidence and severity in our life business
Favorable change from refinements to certain insurance liabilities in both periods

Expenses - Decreased adjusted earnings by $26 million:

Higher legal plan utilization and employee-related expenses, partially offset by a premium tax liability release, 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, 2025 increased $1.6 billion, or 199%, compared to the prior period. The increase was primarily due to growth in our pension risk transfer and United Kingdom (“U.K.”) longevity reinsurance businesses. Changes in premiums were more than offset by a corresponding change in policyholder benefits, both of which are reported net of ceded reinsurance.


	Three Months Ended March 31,
		2025		2024
		(In millions)

















Adjusted earnings		$	401	$	399

Adjusted premiums, fees and other revenues		$	2,430	$	813

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

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

Adjusted Earnings - Increased $2 million primarily due to the following business drivers:

Market Factors - Decreased adjusted earnings by $17 million:

Increase in interest credited expenses mainly driven by higher average interest crediting rates on investment-type products and growth on long-duration products

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Largely offset by:

Recurring investment income increased - positive flows from pension risk transfer transactions and funding agreement issuances, largely offset by lower income on derivatives and lower yields on mortgage loans and fixed income securities
Variable investment income increased - higher returns in real estate funds, partially offset by lower returns on private equity funds

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $20 million:

Favorable mortality and unfavorable prior period refinements to certain insurance liabilities in our annuity businesses

Asia

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 decreased $63 million, or 4%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, decreased $1 million, or less than 1%, compared to the prior period, as an increase in premiums in Korea was substantially offset by decreases in premiums from Japan’s accident & health and yen-denominated life products and lower fee income from Japan’s annuity and foreign currency life products.


	Three Months Ended March 31,
		2025		2024
		(In millions)

















Adjusted earnings		$	374	$	423

Adjusted earnings on a constant currency basis		$	374	$	411

Adjusted premiums, fees and other revenues		$	1,681	$	1,744
Adjusted premiums, fees and other revenues on a constant currency basis		$	1,681	$	1,682

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted Earnings - Decreased $49 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $12 million:

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

Market Factors - Increased adjusted earnings by $5 million:

Variable investment income increased - higher returns on real estate funds, partially offset by lower returns on private equity funds
Recurring investment income increased - higher yields on fixed income securities

Largely offset by:

Higher average interest crediting rates on investment-type and certain insurance products
Favorable change in market-sensitive policyholder liabilities in the prior period

Volume Growth - Increased adjusted earnings by $15 million:

Higher positive net flows resulted in higher average invested assets

Largely offset by:

Increase in interest credited expenses on investment-type and certain insurance products

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

Lower surrender charges in Japan and China

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Unfavorable morbidity experience in Korea

Expenses - Decreased adjusted earnings by $14 million:

Higher direct expenses and corporate overhead expenses

Taxes - Decreased adjusted earnings by $20 million:

Unfavorable change in Japan - impact from a tax rate change in the current period
Unfavorable change in Korea - tax benefits due to a tax audit settlement in the prior period

Latin America

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $17 million, or 1%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $191 million, or 14%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.


	Three Months Ended March 31,
		2025		2024
		(In millions)


















Adjusted earnings		$	218	$	233

Adjusted earnings on a constant currency basis		$	218	$	204

Adjusted premiums, fees and other revenues		$	1,513	$	1,496
Adjusted premiums, fees and other revenues on a constant currency basis		$	1,513	$	1,322

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted Earnings - Decreased $15 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $29 million:

Mexican peso weakened against the U.S. dollar

Market Factors - Decreased adjusted earnings by $8 million:

Recurring investment income decreased - lower returns on our Chilean encaje within fair value option (“FVO”) securities, driven by a decrease in bond index returns, and lower yields on fixed income securities

Partially offset by:

Favorable impact of higher inflation, primarily in Chile
Variable investment income increased - higher returns on private equity funds

Volume Growth - Increased adjusted earnings by $28 million:

Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets
Higher sales, primarily in Mexico

Partially offset by:

Increase in interest credited expenses on long-duration products

Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $20 million:

Favorable refinements to certain insurance liabilities primarily in Chile and Mexico in the prior period

Taxes - Increased adjusted earnings by $14 million:

Income tax refund in Chile

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Tax adjustments in both periods - recurring tax item related to inflation in Chile and Mexico

EMEA

Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $48 million, or 8%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $74 million, or 12%, 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 and ordinary life businesses across the region, as well as our pension business in Turkey.


	Three Months Ended March 31,
		2025		2024
		(In millions)


















Adjusted earnings		$	83	$	77

Adjusted earnings on a constant currency basis		$	83	$	73

Adjusted premiums, fees and other revenues		$	668	$	620
Adjusted premiums, fees and other revenues on a constant currency basis		$	668	$	594

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted Earnings - Increased $6 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $4 million:

Turkish lira, euro and Egyptian pound weakened against the U.S. dollar

Market Factors - Increased adjusted earnings by $5 million:

Recurring investment income increased - higher yields on fixed income securities

Volume Growth - Increased adjusted earnings by $16 million:

Increase in sales and business growth:

◦Credit life and pension businesses in Turkey

◦Accident & health and ordinary life businesses across the region

◦Corporate solutions business in the Gulf, the U.K. and Egypt

Underwriting and Other Insurance Adjustments - No change to adjusted earnings:

Favorable underwriting experience across the region

Offset by:

Favorable change from refinements to certain insurance liabilities in the prior period

Expenses - Decreased adjusted earnings by $13 million:

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

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MetLife Holdings

Business Overview. The 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,
		2025		2024
		(In millions)

















Adjusted earnings		$	154	$	159

Adjusted premiums, fees and other revenues		$	780	$	841

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

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

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

Market Factors - Decreased adjusted earnings by $3 million:

Recurring investment income decreased - lower average invested assets due to business run-off and lower income on derivatives, largely offset by higher income on real estate investments, as well as higher yields on fixed income securities and mortgage loans

Substantially offset by:

Decrease in interest credited expenses on long-duration products

Volume Growth - Decreased adjusted earnings by $10 million, consistent with business run-off

Underwriting and Other Insurance Adjustments - Increased adjusted earnings slightly:

Unfavorable reserve refinement in the prior period, partially offset by lower fees in our annuity business in the current period

Largely offset by:

Unfavorable morbidity experience in our long-term care business

Expenses - Increased adjusted earnings by $5 million, consistent with business run-off

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Corporate & Other


	Three Months Ended March 31,
		2025		2024
		(In millions)



















Adjusted earnings available to common shareholders		$	(248)	$	(241)

Adjusted premiums, fees and other revenues		$	112	$	104

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


	Three Months Ended March 31,
		2025		2024
		(In millions)
Business activities		$	9	$	6
Net investment income		78		102
Interest expense on debt		(258)		(265)
Corporate initiatives and projects		(10)		(6)
Other		(66)		(81)
Provision for income tax (expense) benefit and other tax-related items		65		70
Preferred stock dividends		(66)		(67)
Adjusted earnings available to common shareholders		$	(248)	$	(241)

Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Adjusted Earnings Available to Common Shareholders - Decreased $7 million primarily due to the following:

Net Investment Income - Decreased adjusted earnings available to common shareholders by $19 million:

Recurring investment income decreased - lower yields on fixed income securities and lower average invested assets, partially offset by higher income on real estate investments

Interest Expense on Debt - Increased adjusted earnings available to common shareholders by $6 million:

Senior note repayment at maturity in April 2024
Decreased interest expense on surplus notes

Partially offset by:

Senior note issuances in March 2024, June 2024 and September 2024
Subordinated debt securities issuance in March 2025

Other - Increased adjusted earnings available to common shareholders by $12 million:

Lower corporate-related expenses
Lower litigation reserves

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

Less favorable tax adjustments related to foreign operations

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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.

Invested Assets and Cash and Cash Equivalents Subject to Ceded Reinsurance with Third Parties

The Company maintains invested assets and cash and cash equivalents that are subject to ceded reinsurance arrangements with third parties. “Reinsurance adjustments” relate to balances subject to ceded reinsurance arrangements with third parties and the related investment returns and other expenses which are passed through to the third-party reinsurers. Reinsurance adjustments, unless otherwise stated, have been excluded from the amounts within the Investments sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements and Note 9 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report for more information about Reinsurance adjustments and reinsurance, respectively.

The following table presents the carrying value of invested assets and cash and cash equivalents subject to ceded reinsurance at:


	March 31, 2025		December 31, 2024
	(In millions)
Fixed maturity securities AFS:
U.S. corporate	$	879	$	790
Foreign corporate	444		405
Foreign government	361		355
Residential mortgage-backed securities (“RMBS”)	325		286
Asset-backed securities and collateralized loan obligations (collectively, “ABS & CLO”)	250		201
Commercial mortgage-backed securities (“CMBS”)	187		165
Municipals	140		111
U.S. government and agency	340		78
Total fixed maturity securities AFS	2,926		2,391
Net mortgage loans:
Commercial	82		82
Residential	—		3
Net mortgage loans	82		85
Other limited partnership interests	12		11
Short-term investments, cash and cash equivalents	7		206
Total invested assets and cash and cash equivalents subject to ceded reinsurance	$	3,027	$	2,693

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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. See “— Results of Operations — Consolidated Results” and “— Results of Operations — Consolidated Results — Adjusted Earnings Available to Common Shareholders” for impacts on our derivatives and analysis of the period over period changes in investment portfolio results and “Investments — Fixed Maturity Securities AFS — 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, 2025
Country	Sovereign (1)			Financial Services			Non-Financial Services			Total (2)
	(Dollars in millions)




Israel	$	99		$	27		$	96		$	222

Ukraine	18			—			2			20
Russian Federation	14			—			—			14


Total	$	131		$	27		$	98		$	256
Investment grade %	75.7		%	100.0		%	55.3		%	70.4		%

(1)Sovereign includes government and agency.

(2)The par value, amortized cost, net of ACL, and estimated fair value of these securities were $320 million, $287 million and $256 million, respectively, at March 31, 2025.

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.

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


	For the Three Months Ended March 31,
	2025		2024
	(In millions)
Net investment income — GAAP	$	4,885	$	5,436
Investment hedge adjustments	103		176
Unit-linked investment income and Reinsurance adjustments	184		(542)
Other	41		(2)
Adjusted net investment income (1)	$	5,213	$	5,068

(1)See “Financial Measure and Segment Accounting Policies” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for a discussion of the adjustments made to net investment income under GAAP in calculating adjusted net investment income.

Yield Table


	For the Three Months Ended March 31,
	2025				2024
Asset Class	Yield % (1)		Amount		Yield % (1)		Amount
	(Dollars in millions)
Fixed maturity securities (2), (3)	4.36	%	$	3,259	4.38	%	$	3,200
Net mortgage loans (3), (4)	5.21		1,056		5.25		1,100
Real estate and real estate joint ventures	4.01		134		(2.74)		(90)
Policy loans	5.38		107		5.56		113
Equity securities	6.16		9		5.48		7
Other limited partnership interests	6.22		222		8.27		301
Cash and short-term investments	4.42		224		5.32		246
Other invested assets	—		365		—		348
Investment income	4.82		5,376		4.75		5,225
Investment fees and expenses	(0.15)		(162)		(0.14)		(157)
Net investment income including divested businesses (5)	4.67	%	$	5,214	4.61	%	$	5,068
Less: net investment income from divested businesses (5)			1				—
Adjusted net investment income			$	5,213			$	5,068

(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, invested assets and cash and cash equivalents subject to ceded reinsurance with 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 ($20) million and $85 million for the three months ended March 31, 2025 and 2024, 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.

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(4)Investment income from net mortgage loans excludes investment income from mortgage loans originated for third parties, respectively. See “— Net Mortgage Loans.”

(5)See “Financial Measure 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 Available to Common Shareholders” for an analysis of the period over period changes in investment portfolio results.

Net Investment Gains (Losses)

We purchase investments to support our insurance liabilities and not to generate net investment gains and losses. However, net investment gains and losses are incurred and can change significantly from period to period due to changes in external influences, including changes in market factors such as interest rates, foreign currency exchange rates, credit spreads and equity markets; counterparty specific factors such as financial performance, credit rating and collateral valuation; and internal factors such as portfolio rebalancing. Changes in these factors from period to period can significantly impact the levels of provision for credit loss and impairments on our investment portfolio, as well as realized gains and losses on investments sold.

See “— Results of Operations — Consolidated Results” for an analysis of the period over period changes in realized gains (losses) on investments sold, provision (release) for credit loss and impairments and non-investment portfolio gains (losses).

Fixed Maturity Securities AFS and Equity Securities

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


	March 31, 2025					December 31, 2024
Securities by Type	Estimated Fair Value			% of Total		Estimated Fair Value			% of Total
	(Dollars in millions)
Fixed maturity securities AFS
Publicly traded	$	208,282		72.1	%	$	201,259		72.2	%
Privately-placed	80,527			27.9		77,393			27.8
Total fixed maturity securities AFS excluding Reinsurance adjustments	$	288,809		100.0	%	$	278,652		100.0	%
Reinsurance adjustments	2,926					2,391
Total fixed maturity securities AFS	$	291,735				$	281,043
Percentage of cash and invested assets excluding Reinsurance adjustments	61.6		%			60.7		%
Equity securities
Publicly traded	$	496		66.4	%	$	474		66.6	%
Privately-held	251			33.6		238			33.4
Total equity securities	$	747		100.0	%	$	712		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 RMBS, ABS & CLO, and 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 2024 Annual Report for further information on the processes used to value securities and the related controls.

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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, 2025
Level	Fixed Maturity Securities AFS				Equity Securities
	(Dollars in millions)
Level 1
Quoted prices in active markets for identical assets	$	16,040	5.6	%	$	424	56.8	%
Level 2
Independent pricing sources	$	241,030	83.4	%	$	72	9.6	%
Internal matrix pricing or discounted cash flow techniques	—		—		3		0.4
Significant other observable inputs	$	241,030	83.4	%	$	75	10.0	%
Level 3
Independent pricing sources	$	28,491	9.9	%	$	37	5.0	%
Internal matrix pricing or discounted cash flow techniques	2,675		0.9		207		27.7
Independent broker quotations	573		0.2		4		0.5
Significant unobservable inputs	$	31,739	11.0	%	$	248	33.2	%
Total at estimated fair value excluding Reinsurance adjustments	$	288,809	100.0	%	$	747	100.0	%
Reinsurance adjustments	2,926				—
Total at estimated fair value excluding Reinsurance adjustments	$	291,735			$	747

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, 2025: foreign corporate securities, U.S. corporate securities and RMBS. During the three months ended March 31, 2025, Level 3 fixed maturity securities AFS decreased by $2.8 billion, or 8.2%. The decrease was driven by transfers out of Level 3 in excess of transfers into Level 3, partially offset by purchases in excess of sales.

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 2024 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 2024 Annual Report for a discussion of the credit quality ratings assigned by Nationally Recognized Statistical Rating Organizations (“NRSRO”), credit quality designations and designation categories assigned by the Securities Valuation Office of the National Association of Insurance Commissioners (“NAIC”) for fixed maturity securities AFS and modeling methodologies adopted by the NAIC for non-agency RMBS and CMBS that estimate security level expected losses under a variety of economic scenarios.

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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, 2025								December 31, 2024
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	$	218,417	$	(18,949)	$	199,468	69.1	%	$	212,723	$	(20,624)	$	192,099	68.9	%
Baa	2	81,228		(4,116)		77,112		26.7		79,308		(4,963)		74,345		26.7
Subtotal investment grade		299,645		(23,065)		276,580		95.8		292,031		(25,587)		266,444		95.6
Ba	3	8,809		(135)		8,674		3.0		8,834		(154)		8,680		3.1
B	4	3,419		(221)		3,198		1.1		3,279		(244)		3,035		1.1
Caa and lower	5	342		(51)		291		0.1		478		(53)		425		0.2
In or near default	6	87		(21)		66		—		106		(38)		68		—
Subtotal below investment grade		12,657		(428)		12,229		4.2		12,697		(489)		12,208		4.4
Total fixed maturity securities AFS excluding Reinsurance adjustments		$	312,302	$	(23,493)	$	288,809	100.0	%	$	304,728	$	(26,076)	$	278,652	100.0	%
Reinsurance adjustments		3,035		(109)		2,926				2,533		(142)		2,391
Total fixed maturity securities AFS		$	315,337	$	(23,602)	$	291,735			$	307,261	$	(26,218)	$	281,043

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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, 2025
U.S. corporate	$	41,516		$	33,883		$	3,276		$	1,426		$	185		$	30		$	80,316
Foreign corporate	18,754			32,716			3,199			366			37			11			55,083
Foreign government	32,296			5,610			1,628			1,311			30			17			40,892
RMBS	37,452			1,419			162			37			9			4			39,083
U.S. government and agency	33,166			369			—			—			—			—			33,535
ABS & CLO	17,404			2,887			388			42			25			2			20,748
Municipals	9,560			186			18			—			—			—			9,764
CMBS	9,320			42			3			16			5			2			9,388
Total fixed maturity securities AFS excluding Reinsurance adjustments	$	199,468		$	77,112		$	8,674		$	3,198		$	291		$	66		$	288,809
Percentage of total	69.1		%	26.7		%	3.0		%	1.1		%	0.1		%	—		%	100.0		%
Reinsurance adjustments	2,017			867			36			—			6			—			2,926
Total fixed maturity securities AFS	$	201,485		$	77,979		$	8,710		$	3,198		$	297		$	66		$	291,735
December 31, 2024
U.S. corporate	$	40,319		$	33,271		$	3,458		$	1,282		$	222		$	32		$	78,584
Foreign corporate	18,419			31,264			3,157			375			124			15			53,354
Foreign government	31,927			5,078			1,529			1,302			46			13			39,895
RMBS	32,860			1,144			81			38			8			4			34,135
U.S. government and agency	32,982			368			—			—			—			—			33,350
ABS & CLO	16,927			2,993			405			38			25			2			20,390
Municipals	9,557			183			22			—			—			—			9,762
CMBS	9,108			44			28			—			—			2			9,182
Total fixed maturity securities AFS excluding Reinsurance adjustments	$	192,099		$	74,345		$	8,680		$	3,035		$	425		$	68		$	278,652
Percentage of total	68.9		%	26.7		%	3.1		%	1.1		%	0.2		%	—		%	100.0		%
Reinsurance adjustments	1,592			783			10			—			6			—			2,391
Total fixed maturity securities AFS	$	193,691		$	75,128		$	8,690		$	3,035		$	431		$	68		$	281,043

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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, 2025 or December 31, 2024. The top 10 holdings comprised 1% of total investments at both March 31, 2025 and December 31, 2024. The table below presents our U.S. and foreign corporate securities portfolios by industry at:


	March 31, 2025				December 31, 2024
Industry	Estimated Fair Value		% of Total		Estimated Fair Value		% of Total
	(Dollars in millions)
Finance	$	30,844	22.8	%	$	30,381	23.1	%
Consumer (cyclical and non-cyclical)	27,646		20.4		26,823		20.3
Utility	25,539		18.9		25,029		19.0
Industrial (basic, capital goods and other)	15,278		11.3		14,681		11.1
Transportation	12,597		9.3		12,208		9.3
Communications	9,659		7.1		9,536		7.2
Energy	7,726		5.7		7,411		5.6
Technology	4,569		3.4		4,359		3.3
Other	1,541		1.1		1,510		1.1
Total excluding Reinsurance adjustments	$	135,399	100.0	%	$	131,938	100.0	%
Reinsurance adjustments	1,323				1,195
Total U.S. and Foreign Corporate fixed maturity securities AFS	$	136,722			$	133,133

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 $69.2 billion and $63.7 billion of Structured Products, at estimated fair value, at March 31, 2025 and December 31, 2024, 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, 2025						December 31, 2024
	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	$	25,472	65.2	%	$	(920)	$	21,568	63.2	%	$	(1,370)
Pass-through mortgage-backed securities	13,611		34.8		(1,045)		12,567		36.8		(1,294)
Total RMBS excluding Reinsurance adjustments	$	39,083	100.0	%	$	(1,965)	$	34,135	100.0	%	$	(2,664)
Reinsurance adjustments	325				4		286				1
Total RMBS	$	39,408			$	(1,961)	$	34,421			$	(2,663)
Risk profile
Agency	$	23,692	60.6	%	$	(1,555)	$	20,660	60.5	%	$	(2,058)
Non-Agency
Prime and prime investor	7,265		18.6		(267)		6,390		18.7		(374)
Non-qualified residential mortgage (“NQM”) and alternative (“Alt-A”)	1,693		4.3		(14)		1,699		5.0		(37)
Reperforming and sub-prime	3,676		9.4		(124)		3,579		10.5		(173)
Other (1)	2,757		7.1		(5)		1,807		5.3		(22)
Subtotal Non-Agency	15,391		39.4	%	(410)		13,475		39.5	%	(606)
Total RMBS excluding Reinsurance adjustments	$	39,083	100.0	%	$	(1,965)	$	34,135	100.0	%	$	(2,664)
Reinsurance adjustments	325				$	4	286				1
Total RMBS	$	39,408			$	(1,961)	$	34,421			$	(2,663)
Ratings profile
Rated Aaa and Aa	$	33,847	86.6	%			$	29,158	85.4	%
Designated NAIC 1	$	37,454	95.8	%			$	32,860	96.3	%

(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 2024 Annual Report for further information about collateralized mortgage obligations and pass-through mortgage-backed securities, as well as agency, prime, prime investor, NQM, Alt-A, reperforming and sub-prime mortgage-backed securities.

We manage our exposure to reperforming and sub-prime RMBS holdings by focusing primarily on senior tranche securities, stress testing the portfolio with severe loss assumptions and closely monitoring the performance of the portfolio. Our reperforming RMBS are generally newer vintage securities and higher quality at purchase and 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, 2025						December 31, 2024
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
ABS
Collateral type
Digital infrastructure	$	2,061	9.9	%	$	(9)	$	1,938	9.5	%	$	(22)
Vehicle and equipment loans	1,484		7.2		(11)		1,328		6.5		(1)
Consumer loans	1,294		6.2		(22)		1,173		5.8		(34)
Credit card	1,128		5.4		6		1,122		5.5		7

Franchise	764		3.7		(31)		816		4.0		(35)
Student loans	681		3.3		(26)		671		3.3		(37)
Other (1)	6,345		30.6		(175)		6,197		30.4		(263)
Total	13,757		66.3	%	(268)		13,245		65.0	%	(385)
CLO (2)	6,991		33.7	%	—		7,145		35.0	%	11
Total ABS & CLO excluding Reinsurance adjustments	$	20,748	100.0	%	$	(268)	$	20,390	100.0	%	$	(374)
Reinsurance adjustments	250				2		201				1
Total ABS & CLO	$	20,998			$	(266)	$	20,591			$	(373)
ABS ratings profile
Rated Aaa and Aa	$	4,313	31.4	%			$	3,977	30.0	%
Designated NAIC 1	$	11,037	80.2	%			$	10,366	78.3	%
CLO ratings profile
Rated Aaa and Aa	$	5,149	73.7	%			$	5,313	74.4	%
Designated NAIC 1	$	6,343	90.7	%			$	6,386	89.4	%
ABS & CLO ratings profile
Rated Aaa and Aa	$	9,462	45.1	%			$	9,290	45.6	%
Designated NAIC 1	$	17,380	82.8	%			$	16,752	82.2	%

(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, 2025						December 31, 2024
	Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)		Estimated Fair Value		% of Total		Net Unrealized Gains (Losses)
	(Dollars in millions)
Collateral type
Conduit	$	4,936	52.5	%	$	(238)	$	5,097	55.5	%	$	(325)
Single asset and single borrower	2,308		24.6		(64)		2,197		23.9		(75)
Agency	919		9.8		(99)		715		7.8		(116)
Commercial real estate collateralized loan obligations	222		2.4		(1)		249		2.7		(1)
Other	1,003		10.7		(12)		924		10.1		20
Total CMBS excluding Reinsurance adjustments	$	9,388	100.0	%	$	(414)	$	9,182	100.0	%	$	(497)
Reinsurance adjustments	187				1		165				3
Total CMBS	$	9,575			$	(413)	$	9,347			$	(494)
Ratings profile
Rated Aaa and Aa	$	7,615	81.1	%			$	7,467	81.3	%
Designated NAIC 1	$	9,320	99.3	%			$	9,108	99.2	%

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, 2025.

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 $14.7 billion and $14.4 billion at March 31, 2025 and December 31, 2024, 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 2024 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 $591 million and $433 million at March 31, 2025 and December 31, 2024, 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 $605 million and $443 million at March 31, 2025 and December 31, 2024, respectively.

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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.

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


	March 31, 2025									December 31, 2024
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		$	47,890	58.8	%	$	589	1.2	%	$	48,967	59.6	%	$	461	0.9	%
Agricultural		18,779		23.1		93		0.5	%	19,030		23.1		83		0.4	%
Residential		14,783		18.1		189		1.3	%	14,186		17.3		179		1.3	%
Total excluding Reinsurance adjustments		81,452		100.0	%	871		1.1	%	82,183		100.0	%	723		0.9	%
Reinsurance adjustments		82				—				85				—
Net mortgage loans		$	81,534			$	871			$	82,268			$	723

(1)Does not include mortgage loans originated for third parties of $7.4 billion at amortized cost ($7.1 billion commercial and $309 million agricultural) or the related ACL of $110 million at March 31, 2025, and $7.5 billion at amortized cost ($7.2 billion commercial and $283 million agricultural) or the related ACL of $77 million at December 31, 2024.

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, 87% are collateralized by properties located in the U.S., with the remaining 13% collateralized by properties located primarily in Mexico, the U.K. and Australia at March 31, 2025. The carrying values of our net commercial and agricultural mortgage loans collateralized by properties located in California, New York and Texas were 16%, 9% and 6%, respectively, of total net commercial and agricultural mortgage loans at March 31, 2025. 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, 2025. The carrying values of our residential mortgage loans located in California, Florida and New York were 33%, 10% and 7%, respectively, of total residential mortgage loans at March 31, 2025.

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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, 2025				December 31, 2024
	Amount		% of Total		Amount		% of Total
	(Dollars in millions)
Region
Pacific	$	8,677	18.1	%	$	8,738	17.8	%
Non-U.S.	7,802		16.3		7,901		16.1
Middle Atlantic	6,877		14.4		6,938		14.2
South Atlantic	5,796		12.1		5,890		12.0
West South Central	3,214		6.7		3,228		6.6
New England	2,501		5.2		2,680		5.5
Mountain	2,455		5.1		2,317		4.7
East North Central	1,453		3.0		1,453		3.0
East South Central	481		1.0		481		1.0
West North Central	408		0.9		410		0.8
Multi-Region and Other	8,226		17.2		8,931		18.3
Total amortized cost excluding Reinsurance adjustments	$	47,890	100.0	%	$	48,967	100.0	%
Reinsurance adjustments	82				82
Total	$	47,972			$	49,049
Less: ACL	589				461
Carrying value, net of ACL	$	47,383			$	48,588
Property Type
Office	$	18,134	37.9	%	$	18,269	37.3	%
Apartment	10,549		22.0		10,472		21.4
Retail	6,502		13.6		6,612		13.5
Single Family Rental	4,844		10.1		5,355		10.9
Industrial	4,506		9.4		4,999		10.2
Hotel	3,268		6.8		3,178		6.5
Other	87		0.2		82		0.2
Total amortized cost excluding Reinsurance adjustments	47,890		100.0	%	48,967		100.0	%
Reinsurance adjustments	82				82
Total	$	47,972			$	49,049
Less: ACL	589				461
Carrying value, net of ACL	$	47,383			$	48,588

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.

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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.

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 69% at both March 31, 2025 and December 31, 2024 and our average DSCR was 2.1x at both March 31, 2025 and December 31, 2024. 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% at both March 31, 2025 and December 31, 2024. 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 $47.9 billion at amortized cost at March 31, 2025 by key credit quality indicators of LTV and DSCR was as follows:




	March 31, 2025
	DSCR
LTV	> 1.2x		1.0-1.2x		< 1.0x		Total
<65%	46.5	%	2.9	%	1.4	%	50.8	%
65% - 75%	17.3	%	1.3	%	0.7	%	19.3	%
76% - 80%	5.5	%	0.1	%	0.5	%	6.1	%
>80%	16.1	%	3.7	%	4.0	%	23.8	%
Total	85.4	%	8.0	%	6.6	%	100.0	%

The distribution of our net agricultural mortgage loan portfolios totaling $18.8 billion at amortized cost at March 31, 2025 by the key credit quality indicator of LTV was as follows:





	March 31, 2025
LTV	Total
<65%	92.4	%
65% - 75%	7.1	%
76% - 80%	0.2	%
>80%	0.3	%
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.

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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.

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, consisting of single and multi-property projects, and are broadly diversified across multiple property types and geographies.

The carrying value of our real estate investments was $13.5 billion and $13.3 billion at March 31, 2025 and December 31, 2024, respectively, or 2.9% of cash and invested assets at both March 31, 2025 and December 31, 2024.

Our real estate investments are typically stabilized properties that we intend to hold for the longer-term for portfolio diversification and long-term appreciation. Our real estate investment portfolio had appreciated to a $3.6 billion unrealized gain position at March 31, 2025.

We continuously monitor and assess our real estate investments for impairment when facts and circumstances indicate that the real estate may be impaired. As a result of our impairment analysis, we recorded an impairment loss of $1 million for the three months ended March 31, 2025. There was no impairment loss recognized on our real estate investments for the three months ended March 31, 2024.

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. At March 31, 2025 and December 31, 2024, the carrying value of other limited partnership interests was $14.1 billion and $14.4 billion. Other limited partnership interests were 3.0% and 3.1% of cash and invested assets at March 31, 2025 and December 31, 2024, respectively. Cash distributions on these investments are generated from investment gains, operating income from the underlying investments of the funds and liquidation of the underlying investments of the funds.

We use the equity method of accounting for most of our private equity funds. We generally recognize our share of a private equity fund’s earnings in net investment income on a three-month lag, which is when the information is reported to us. Accordingly, changes in equity market levels, which can impact the underlying results of these private equity funds, are recognized in earnings within our net investment income on a three-month lag.

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Other Invested Assets

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


	March 31, 2025					December 31, 2024
Asset Type	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Freestanding derivatives with positive estimated fair values	$	8,602		49.2	%	$	8,212		44.4	%
Operating joint ventures	748			4.3		2,006			10.8
Company-owned life insurance policies	1,760			10.1		1,738			9.4
Annuities funding structured settlement claims	1,249			7.1		1,248			6.7
Direct financing leases	1,283			7.3		1,228			6.6
Tax credit and renewable energy partnerships	688			3.9		714			3.9
Federal Home Loan Bank of New York (“FHLBNY”) common stock	699			4.0		699			3.8
Leveraged leases	563			3.2		623			3.4
Funds withheld	435			2.5		433			2.3
Other	1,443			8.4		1,603			8.7
Total	$	17,470		100.0	%	$	18,504		100.0	%
Percentage of cash and invested assets	3.7		%			4.0		%

See Notes 1, 11 and 12 of the Notes to the Consolidated Financial Statements included in the 2024 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, 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 20 of the Notes to the Interim Condensed Consolidated Financial Statements for the amount of our unfunded investment commitments at March 31, 2025 and December 31, 2024. 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.”

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Derivatives

Overview

We are exposed to various risks relating to our ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. We use a variety of strategies to manage these risks, including the use of derivatives, such as market standard purchased and written credit default swap contracts. See Note 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, 2025 and December 31, 2024.
The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedging relationships for the three months ended March 31, 2025 and 2024.

See “— Summary of Critical Accounting Estimates — Derivatives” in the 2024 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 2024 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 (facility agreement for senior debt issuances);

◦Note 14 (subordinated debt issuance); and

◦Note 15 (preferred stock, including the calculation and timing of dividend payments, and MetLife, Inc.’s common stock repurchase authorizations).

Additionally, this discussion should be read in conjunction with the following sections included in the 2024 Annual Report for additional information regarding the topics noted below:

Notes to the Consolidated Financial Statements:

◦Note 3 (acquisitions and dispositions);

◦Note 5 (funding agreements, reported in PABs, and the related pledged collateral);

◦Note 16 (long-term debt, short-term debt, credit and committed facilities, and debt and facility covenants);

◦Note 17 (collateral financing arrangement and the related pledged collateral);

◦Note 18 (junior subordinated debt securities and the related replacement capital covenant); and

◦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:

◦Note 3 (affiliated long-term debt); and

◦Note 4 (support agreements).

Risk Factors:

◦“— Capital Risks”;

◦“— Investment Risks — We May Have Difficulty Selling Holdings in Our Investment Portfolio or in Our Securities Lending Program in a Timely Manner to Realize Their Full Value”;

◦“— Economic Environment and Capital Markets Risks — We May Not Meet Our Liquidity Needs, Access Capital, or May Face Significantly Increased Cost of Capital Due to Adverse Capital and Credit Market Conditions”; and

◦“— 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.”

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.”

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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 2024 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, 2025 and December 31, 2024, our short-term liquidity position was $20.6 billion and $18.6 billion, respectively, and liquid assets were $178.3 billion and $172.8 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.

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,
	2025		2024
	(In millions)
Sources:
Operating activities, net	$	4,262	$	2,328
Net change in PABs	1,776		1,071
Net change in payables for collateral under securities loaned and other transactions	233		50
Long-term debt issued	89		758
Subordinated debt securities issued	1,000		—
Effect of change in foreign currency exchange rates on cash and cash equivalents	98		—
Total sources	7,458		4,207
Uses:
Investing activities, net	3,322		2,627
Long-term debt repaid	555		264
Collateral financing arrangement repaid	13		47
Derivatives with certain financing elements and other derivative-related transactions, net	71		55
Net change in mortgage loan secured financing	189		119
Treasury stock acquired in connection with share repurchases	1,411		1,172
Dividends on preferred stock	66		67
Dividends on common stock	374		377
Other, net	199		39
Effect of change in foreign currency exchange rates on cash and cash equivalents	—		239
Total uses	6,200		5,006
Net increase (decrease) in cash and cash equivalents	$	1,258	$	(799)

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 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 2024 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.

Facility Agreement for Senior Debt Issuances

In March 2025, we expanded our sources of liquidity by entering into a 30-year facility agreement with a Delaware trust (the “Trust”) which gives the Company the right to issue and sell to the Trust from time to time up to $1,250 million of senior notes in exchange for a corresponding amount of U.S. Treasury securities. See Note 13 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information.

Credit and Committed Facilities

At March 31, 2025, 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, 2025 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	$	296	$	—	$	2,704

Committed Facilities:
MetLife Reinsurance Company of Vermont and MetLife, Inc.	$	350	$	350	$	—	$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.	2,896		2,482		—		414
Total Committed Facilities	$	3,246	$	2,832	$	—	$	414

Outstanding Debt

The following table summarizes our outstanding debt at:


	March 31, 2025		December 31, 2024
	(In millions)
Short-term debt (1)	$	381	$	465
Long-term debt (2)	$	14,695	$	15,086
Collateral financing arrangement	$	463	$	476
Subordinated debt securities (3)	$	4,153	$	3,164

(1)This is all short-term debt that is non-recourse to MetLife, Inc., subject to customary exceptions. Certain subsidiaries have pledged assets to secure this debt.

(2)Includes $370 million and $348 million of long-term debt that is non-recourse to MetLife, Inc. and Metropolitan Life Insurance Company (“MLIC”), subject to customary exceptions, at March 31, 2025 and December 31, 2024, respectively. Certain investment subsidiaries have pledged assets to secure this debt.

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(3)Includes $1.0 billion of subordinated debt issued in March 2025. See Note 14 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information.

Certain of our debt instruments and Committed Facilities, as well as our Credit Facility, contain various administrative, reporting, legal and financial covenants. We believe we were in compliance with all applicable financial covenants at March 31, 2025.

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 2024 Annual Report referenced in “— Overview” and are discussed below.

Common Stock and Preferred 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 2024 Annual Report.

For the three months ended March 31, 2025 and 2024, MetLife, Inc. paid dividends on its preferred stock of $66 million and $67 million, respectively. For the three months ended March 31, 2025 and 2024, MetLife, Inc. paid dividends on its common stock of $374 million and $377 million, respectively.

We intend to use the net proceeds from the March 2025 subordinated debt issuance for general corporate purposes, which may include the redemption or repurchase in whole or in part of MetLife, Inc.’s 3.85% Fixed Rate Reset Non-Cumulative Preferred Stock, Series G.

See Note 21 of the Notes to the Interim Condensed Consolidated Financial Statements for information on a subsequent common stock repurchase authorization.

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.”

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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, 2025 and 2024, general account surrenders and withdrawals from annuity products were $346 million and $458 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, 2025, there were funding agreements totaling $131 million that could be put back to the Company.

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 2024 Annual Report.

Liquid Assets

At March 31, 2025 and December 31, 2024, MetLife holding companies had $4.5 billion and $5.1 billion, respectively, in liquid assets. Of these amounts, $3.4 billion and $4.2 billion were held by MetLife, Inc. and $1.1 billion and $944 million were held by other MetLife holding companies at March 31, 2025 and December 31, 2024, 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 2024 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 2024 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 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 2024 Annual Report referenced in “— Overview” and are discussed below.

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Dividends from Subsidiaries

MetLife, Inc. relies, in part, on dividends from its subsidiaries to meet its cash requirements. MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions on the payment of dividends imposed by the regulators of their respective domiciles. The dividend limitation for U.S. insurance subsidiaries is generally based on the surplus to policyholders at the end of the immediately preceding calendar year and statutory net gain from operations for the immediately preceding calendar year. Statutory accounting practices, as prescribed by insurance regulators of various states in which we conduct business, differ in certain respects from accounting principles used in financial statements prepared in conformity with GAAP. The significant differences relate to the treatment of DAC, certain deferred income tax, required investment liabilities, statutory reserve calculation assumptions, goodwill and surplus notes.

The table below sets forth the dividends permitted to be paid in 2025 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, 2025:


Company	Paid (1)		Permitted Without Approval (2)
	(In millions)
MLIC	$	1,365	$	2,732
American Life Insurance Company	$	—	$	751
Metropolitan Tower Life Insurance Company	$	—	$	358

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

(2)Reflects dividend amounts that may be paid during 2025 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 2025, some or all of such dividends may require regulatory approval.

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.

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Long-term Debt Outstanding

The following table summarizes the outstanding long-term debt of MetLife, Inc. at:


	March 31, 2025		December 31, 2024
	(In millions)
Long-term debt — unaffiliated	$	14,018	$	14,431
Long-term debt — affiliated	$	1,508	$	1,447
Subordinated debt securities	$	3,459	$	2,470

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 2024 Annual Report referenced in “— Overview” and are discussed below.

Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife, Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock and certain of its other securities, pay all general operating expenses and meet its cash needs under current market conditions and reasonably possible stress scenarios.

Affiliated Capital and Debt Transactions

For the three months ended March 31, 2025 and 2024, MetLife, Inc. invested a net amount of $26 million and $111 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 $510 million and $285 million at March 31, 2025 and December 31, 2024, 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 our investors’ understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:


Non-GAAP financial measures:		Comparable GAAP financial measures:
(i)	adjusted premiums, fees and other revenues	(i)	premiums, fees and other revenues
(ii)	adjusted earnings	(ii)	net income (loss)
(iii)	adjusted earnings available to common shareholders	(iii)	net income (loss) available to MetLife, Inc.’s common shareholders

(iv)	adjusted net investment income	(iv)	net investment income

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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 current period and applied to the comparable prior period (“constant currency basis”).

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in “— Results of Operations” and “— Investments.” Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable effort to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income.

Our definitions of non-GAAP and other financial measures discussed in this report may differ from those used by other companies.

Adjusted earnings and related measures:

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

Adjusted earnings is used by the Company’s chief operating decision maker, its Chief Executive Officer (“CEO”), to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. Adjusted earnings and related measures based on adjusted earnings are also the measures by which senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and related measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results*.*

Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends. For information relating to adjusted earnings, see “Financial Measure and Segment Accounting Policies” and “Corporate & Other” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements.

In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.

Return on equity, allocated equity and related measures:

Total MetLife, Inc.’s adjusted common stockholders’ equity: total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of accumulated other comprehensive income (“AOCI”) and the estimated fair value of certain ceded reinsurance-related embedded derivatives (see Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for information about Reinsurance adjustments), all net of income tax.
Total MetLife, Inc.’s adjusted common stockholders’ equity, excluding total notable items: total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI, the estimated fair value of certain ceded reinsurance-related embedded derivatives (see Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for information about Reinsurance adjustments) and total notable items, all net of income tax.
Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
Adjusted return on MetLife, Inc.’s common stockholders’ equity: adjusted earnings available to common shareholders divided by MetLife, Inc.’s average adjusted common stockholders’ equity.

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Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items: adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.’s average adjusted common stockholders’ equity, excluding total notable items.
Allocated equity: the portion of total MetLife, Inc.’s adjusted common stockholders’ equity that management allocates to each of its segments based on local capital requirements and economic capital. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Economic Capital” in the 2024 Annual Report.

The above measures represent a level of equity that excludes most components of AOCI, such as unrealized investment gains (losses), net of related offsets, and future policy benefits discount rate remeasurement gains (losses), as well as the impact of certain ceded reinsurance-related embedded derivatives (see Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for information about Reinsurance adjustments), as these amounts are primarily driven by market volatility.

Expense ratio and direct expense ratio:

Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
Direct expense ratio: 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 Asia, Latin America and EMEA segments are on a constant currency basis.
Volume growth, where cited, represents the change in certain measures of our segment results, including adjusted earnings, attributable to business growth, applying a model in which certain margins and factors are held constant, the most significant of which are underwriting margins, investment margins, changes in equity market performance, expense margins and the impact of changes in foreign currency exchange rates.
Pension risk transfers include U.K. funded reinsurance.
Near-term represents one to three years.
We refer to observable forward yield curves as of a particular date in connection with making our estimates for future results. The observable forward yield curves at a given time are based on implied future interest rates along a range of interest rate durations. This includes the 10-year U.S. Treasury rate which we use as a benchmark rate to describe longer-term interest rates used in our estimates for future results.
Notable items reflect the unexpected impact of events that affect the Company’s results, but that were unknown and that the Company could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of the Company’s results and to evaluate and forecast those results. Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders.
The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. The Company defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to common shareholders.

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Risk Management

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in the 2024 Annual Report for information on our risk management.

Subsequent Events

On April 30, 2025, the Company entered into a definitive agreement with Talcott Resolution Life Insurance Company, a life insurance and annuities subsidiary of Talcott Financial Group, to reinsure approximately $10.0 billion of variable annuity and rider reserves, which are reported in the MetLife Holdings segment. At the closing of the transaction, the Company will enter into a reinsurance agreement on both a modified coinsurance and a funds withheld basis. The transaction is expected to close in the second half of 2025 and is subject to regulatory approvals and other customary closing conditions.

See also Note 21 of the Notes to the Interim Condensed Consolidated Financial Statements for information on a subsequent common stock repurchase authorization.

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