Shefi Ben-Hutta
Editor at Coverager
Metlife

MetLife Q2’24: Record earnings driven by Group Benefits and AI investments

MetLife held its Q2’24 earnings call on Aug 1, 2024, led by CEO Michel A. Khalaf. Key highlights include:

  • MetLife’s Group Benefits segment delivered a record $533 million in adjusted earnings, up 43% year-over-year, largely due to favorable underwriting margins and a historically low Group Life mortality ratio of 79.1%. This was driven by a notably low number of U.S. deaths among those aged 25 to 64, according to CDC data.
  • Overall, MetLife reported adjusted earnings of $1.6 billion, or $2.28 per share, an 18% increase from the prior year. Net income for Q2 was $912 million, compared to $370 million in the previous year.
  • The success is attributed to MetLife’s “Next Horizon” strategy, which has focused on the pillars of focus, simplify, and differentiate over the past five years. This strategy has allowed the company to reinvest $1 billion in growth and technology, with a particular emphasis on AI, which Khalaf believes will further enhance MetLife’s competitive edge.
  • Ramy Tadros, President of US Business & Head of MetLife Holdings, addressed questions on nonmedical health products, noting that dental utilization decreased in Q2 due to normal seasonality. The company manages dental pricing through disciplined renewal practices, with 80% of the book repriced annually. The disability block performed as expected, with strong recoveries and minimal impact from new market entrants.
  • When asked about the sustainability of the strong earnings in Group Benefits, Tadros acknowledged that the low Group Life mortality rate provided a tailwind this quarter, but he expects mortality rates to return to historical levels, making the elevated earnings less likely to persist long-term.

Separately, MetLife is hiring. The Group Benefits Marketing team at MetLife supports the US Group Benefits business by developing strategies to drive growth, customer acquisition, and retention. The Director of Thought Leadership, a role within this team, will lead the creation of thought leadership content, including the Employee Benefits Trends Study (EBTS) narrative, to engage customers and support business goals. This role requires strong leadership, marketing expertise, and collaboration with various partners to ensure effective content deployment and impact. The position offers a hybrid work arrangement in NYC or Bridgewater, NJ, with a salary range of $123,800 to $165,000.

Bottom Line: A largely rational yet competitive market.

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