MetLife presented its growth strategy at the KBW Insurance Conference 2026, outlining the New Frontier five-year plan launched in December 2024. The company aims to achieve 10% earnings per share (EPS) growth, with 10% growth already achieved in 2025 and exceeding the pace in 2024. Adjusted return on equity (ROE) for 2024 reached 17%, at the top of the 15% to 17% target range, with 16% expected in 2025. Free cash flow for 2025 is nearly $5 billion.
MetLife maintains a deliberate 50/50 balance between capital-light and capital-driven businesses. Group benefits saw organic growth of 4% in the first half of 2024, with earnings rising 22% year-over-year, ahead of the 7% to 9% outlook. The group life benefit ratio was 79% in the second quarter.
Asia sales grew a record 17% in the second quarter of 2024, with yen-denominated products making up 50% of sales, up from 30% last year. Asia assets under management (AUM) rose 6% year-over-year. Brazil sales grew 70%, with premium and fee (PFO) growth of 30%, and Brazil now accounts for 20% of Latin America sales overall. Latin America earnings are on track to reach $1 billion in 2024.
The pension Risk Transfer (PRT) business wrote $14 billion in 2023, with well-funded pension plans totaling about $1.5 trillion. U.K. funded reinsurance wrote GBP 1 billion in 2024, and U.S. retail annuity reinsurance has written $2.5 billion since entering in 2023. Spreads in the retirement business remained stable at 95 to 100 basis points, excluding variable investment income. Variable investment income is tracking toward $1.6 billion for the year, with first-half pretax variable investment income at about $750 million.
MetLife Investment Management (MIM) operating margin target for 2029 is 32%. The integration of PineBridge created a headwind of about 50 basis points on the direct expense ratio. Approximately $4 billion of private dry powder remains to be deployed over the next 12 to 18 months.
MetLife announced a new share buyback authorization of $3 billion. The dividend yield is 2.5%, with the dividend raised for 13 consecutive years and maintained for 27 consecutive years. The stock return over the previous six months was 37%.
