VALUATION HIGHLIGHTS

1. U.S. Segment constitutes 47% of the Trefis price estimate for MetLife's stock.
2. Asia Segment constitutes 27% of the Trefis price estimate for MetLife's stock.
3. Latin America Segment constitutes 14% of the Trefis price estimate for MetLife's stock.

WHAT HAS CHANGED?

Latest Earnings

For Q1 2025, MetLife’s revenue rose 16% to $18.57 billion, beating expectations. Net income stood at $945 million, or $1.28 a share, compared with $867 million, or $1.10 a share, a year earlier. The company benefited from favorable underwriting as well as volume growth over the quarter.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are the key drivers of MetLife with the potential upside or downside to the Travelers stock price.

• MetLife's Premiums From Asia MetLife's premiums from Asia stood at $5 billion in 2024. The company is expanding aggressively in high-growth markets in Asia. We expect MetLife to grow its premiums from the region to about $5.3 billion by the end of the Trefis forecast period. There is a 5% upside to the Trefis price estimate if MetLife's premiums from Asia reach $7 billion by the end of the Trefis forecast period.
• MetLife's Premiums From The U.S. MetLife has a market share of more than 11% in the group life insurance market. The growth in employment over the last couple of years has led to a growth of 3-5% in group insurance premiums. Furthermore, we expect big things from the company's PRT business. PRT is growing at an impressive rate, and we anticipate the company to reap benefits from that. Moreover, increases in average premiums per policy in auto and homeowners policies should boost the P&C business. We expect MetLife to grow its premiums from the region to about $33.5 billion by the end of the Trefis forecast period. There is an 8% upside to the Trefis price estimate if MetLife's premiums from Asia reach $44 billion by the end of the Trefis forecast period.

BUSINESS SUMMARY

MetLife is a leading provider of insurance, employee benefits, and financial services with operations throughout the United States, Latin America, Asia Pacific, Europe, the Middle East, and India. MetLife offers life insurance, non-medical health insurance (disability, long-term care, dental), retirement products (fixed/variable annuities), property and casualty insurance (auto, home insurance), retail banking, and other financial services to individuals, groups, and institutions.

SOURCES OF VALUE

MetLife's U.S. business is its single most valuable segment.In the U.S., MetLife's most valuable business is collecting premiums and fees from its customers worldwide. The company invests insurance premiums collected across all its insurance products in assets such as bonds, equities, and mortgages.The company primarily invests in fixed-maturity securities like government and corporate bonds. Nearly 75% of the assets are invested in such securities. The company should, hence, benefit from a higher interest-rate environment.

KEY TRENDS

Modest Growth in Life and Health Insurance Market

Growth in the life and health insurance business continues to be impacted by current macroeconomic conditions. However, the recovering job market is driving growth in the market.