MetLife Q4 Profit Rises on Strong Investment Returns

Key Financial Highlights

MetLife announced a notable increase in its fourth-quarter adjusted profit, driven primarily by stronger returns on its investment portfolio. The insurer reported adjusted earnings of $1.65 billion, or $2.49 per share, a significant rise from $1.46 billion, or $2.09 per share, recorded in the same period a year earlier. Net investment income grew to $5.92 billion from $5.41 billion year-over-year.

Market Conditions and Revenue Growth

The positive results were supported by favorable market conditions during the last three months of 2025, influenced by the U.S. Federal Reserve’s rate cuts which boosted investment returns. The company also benefited from strong consumer spending trends and disciplined premium pricing. Consequently, adjusted premiums, fees, and other revenues saw a 29% increase, reaching $18.61 billion for the quarter.

Overall Performance and Impact

Beyond investment gains, MetLife attributed its profit growth to strong volume growth and improved expense margins. However, despite the strong quarterly performance, the company's shares underperformed the broader market, losing 3.6% throughout 2025. This highlights a potential disconnect between operational success and investor sentiment during the year.

Summary

MetLife's fourth-quarter performance underscores the significant impact of investment income and favorable economic policies on profitability in the insurance sector. While the earnings report is strong, the stock's annual underperformance suggests that investors will be closely watching for sustained growth and market stability in the upcoming periods.

FAQ

Q: What was the main driver of MetLife's Q4 profit growth?
A: The primary driver was a significant increase in net investment income, which rose to $5.92 billion, propelled by favorable market conditions and higher private equity returns.

Q: How did MetLife's adjusted earnings per share change?
A: Its adjusted earnings per share rose to $2.49 in the fourth quarter of 2025, up from $2.09 per share in the same period a year earlier.

Q: Did MetLife's stock perform well in 2025?
A: No, despite the strong quarterly results, the company's stock underperformed the broader market, experiencing a 3.6% loss for the year 2025.

Source: Investing.com