MET earnings call transcript, November 4, 2026

Welcome to the MetLife third quarter 2026 earnings conference call.

At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. Before we get started, I refer you to the cautionary note about forward-looking statements in yesterday's earnings release.

Thank you, Operator, and good morning, everyone. Welcome to MET Life's third quarter. 2026 earnings call. Before we begin, please review the information on non-GAAP measures in our earnings release, in our quarterly financial supplement, and in our earnings call and investor presentations, all of which can be found on the Investor Relations website at metlife.com. On the call today are Michelle Halaf, President and Chief Executive Officer, and John McCallion, Chief Financial Officer and Head of MetLife Investment Management. Other members of Senior Management are... also available to participate. This morning, John will speak to the earnings call presentation we released last night on our website. An appendix to the deck features disclosures, gap reconciliations, and other... information which you should review. After prepared remarks, we will have a Q&A session that ends at the top of the hour. As a reminder, please limit yourself to one question and one follow-up. Now to Michel.

Thank you, John, and good morning, everyone. The third quarter was another excellent quarter under our New Frontier strategy. We delivered MetLife's highest adjusted earnings per share quarter ever with top-line growth across all operating segments. More importantly, the quarter extends a pattern we have demonstrated throughout the year. Broad-based growth, attractive returns, and disciplined capital management. Variable investment income was a significant contributor this quarter, particularly through private equity and venture capital returns. While VII amplified the quarter, it did not define it. It also delivered strong underwriting and volume growth across the enterprise. No single business drove results. That breadth is the central strength of MetLife, our complimentary capital light and capital driven earnings engine. Allow us to create value in different ways and across different market environments. Underwriting margins, fees and spread income generate durable earnings and recurring cash flow. We reinvest that cash where MetLife has structural advantages and return. Excess capital to shareholders. The engines also reinforce one another. Our retirement businesses originate liabilities backed by long-term assets, and we use insurance and third-party capital to support that growth. MetLife Investment Management manages most of the- assets, adding fee income, and expanding our capital-light earnings. This efficient model helps fuel growth and generate capital to reinvest. It is a model designed to compound. Two years into New Frontier, the evidence that the strategy is working as intended is increasingly clear.

To date, adjusted earnings per share excluding notable items are up 22%, with adjusted return on equity above 17%. The sources of growth vary from quarter to quarter, but the pattern is consistent. Broad based execution, attractive returns, and strong cash generation. Now to the third quarter numbers. We reported adjusted earnings of $1.8 billion, or $2.78 per share. That includes $46 million of notable items. Primarily from our annual actuarial assumption review. Excluding notable items, adjusted earnings were $1.8 billion, up 17%. And adjusted earnings per share were $2.85, up 22%. Both from a year ago. Variable investment income totaled $720 million pre-tax on private equity returns of more than 4% versus 3% a year ago. Our direct expense ratio was 11.9%. On track to beat our 12% full year target. Productivity is a big driver of that, and AI is a growing part of it. AI is a force multiplier for us. It's helping us grow, improve customer experience, and operate with greater speed and precision, all while holding down our ratio. as we absorb the acquisition of Pinebridge investment, a structurally higher expense business. Adjusted return on equity, excluding notable items, was 19.6%, well above our full year 15 to 17% target range. This is what compounding looks like. We earn a high return on equity, return capital to shareholders, and still grow adjusted book value per share, up 5% from a year ago to $59.41. Turning to the performance of our businesses, starting with group benefits, adjusted earnings,

were $523 million, excluding notables, up 14%. Life underwriting was favorable as broad-based improvement in working age mortality continues. The group life mortality ratio was 79.5%, well below our target range. The non-medical health ratio was 72.3%, just below the midpoint of our target range. On an adjusted basis, our pre- premium fees and other revenues, or PFOs, increased 5% when you exclude participating contracts, with sales up 12% year-to-date. In my view, group benefits is the most attractive segment of U.S. life insurance. And MetLife is, far and away, best in class across the widest array of products and markets in the industry. This unparalleled scale translates to above market growth with close to $26 billion of annual PFOs. And these capital-like PFOs turn into adjusted earnings with a high free cash flow conversion ratio. Moving to Retirement and Income Solutions, or RIS, adjusted earnings, excluding notable items, were $478 million, up 12%. On higher investment margins and volume growth. Adjusted PFOs, excluding pension risk transfers, increased 33%, driven in part by UK Longevity Reinsurance, and retained liability balance. Finances were up 7%. While U.S. pension risk transfers activity has been lighter this year, we see this as timing, not a structural change. High funding levels provide plan sponsors with execution flexibility. Relative to timing and structure. And the intent to do risk remains strong. All key observations from our annual pension risk transfer poll of plan sponsors.

And this highlights a core strength of our retirement business. It's diversified multi-channel and multi-product. Alongside PRT, we are a leader across UK Longevity RE, UK Funded RE, Structured Settlements, Stable Value, Corporate Owned Life Insurance, and we have a growing presence in US Retail Annuity Reinsurance. Our broad scope and leading positions mean we are not reliant on any single retirement market, and we are able to pivot to those opportunities that represent the highest and best use of our capital. In Asia, adjusted earnings... including notable items, were $550 million, up 21% on a constant currency basis. Results benefited from higher VII and favorable equity markets performance. Adjusted PFOs rose 5% on a constant currency basis, with Korea continuing to show strong momentum. In Latin America, adjusted earnings were $229 million, excluding notable items. The result was impacted by market conditions in Chile, resulting in a negative NCAHE return. What stands out here is our momentum. Adjusted PFOs grew 14% on a constant currency basis, led by Mexico and Chile. As the number one life insurer in Latin America, we reached about 30 million customers across group, agency, and direct channels, including our accelerator-embedded insurance platform. In EMEA, adjusted earnings were 114. million, excluding notable items, up 30%. This was above the $90 to $100 million quarterly run rate we've discussed, driven by volume growth. Adjusted PFOs grew 17% on account.

Constant currency basis. Embedded insurance is working here too. Our new multi-market partnership with Revolut, one of Europe's largest digital banks, offers a seamless, integrated customer experience. This is part of a larger story on MetLife being able to leverage its capabilities on a global scale. We're applying the digital lessons we've learned and the capabilities and experience we've built in Latin America, in EMEA, and soon Asia as well. demonstrating the power of OneMetLife. At MetLife Investment Management, or MEM, adjusted earnings were $63 million, up 9% and 19% year-to-date, reflecting the addition of Pinebridge. and sequential profit margin expansion. No single business carried the quarter. Group led on underwriting, RIS and Asia on investments, Latin America and EMEA on top-line growth. This is diversification at work, and it underscores... the all-weather nature of our results. Against a favorable backdrop for the life insurance industry, including higher rates, stable credit, and rising demand for retirement products, our strong capital position gives us multiple attractive avenues for growth. It all starts with our steady recurring capital generation and free cash flow, and our discipline framework for deploying. Organic growth comes first, where we have structural advantages and can earn attractive risk-adjusted returns. We hold every... $20 deployed to support new business to a strict return standard, and we track the value it creates, VNB, or the value of new business. We have done this consistently for more than a decade. At the start of this journey 10 years ago...

We put $2.9 billion of capital to work at an internal rate of return of 12% and a payback period of 8 years. Fast forward to last year, where we deployed $3.8 billion at an IRR of 19%. And a payback of five years. More capital deployed at a higher IRR with a faster payback. That discipline has been compounding and it is showing up in our rising return on equity. After funding a track. With active organic growth, we consider acquisitions but only when they add a strategic capability and meet our stringent financial criteria. A deal has to earn at least as much as we earn by investing in our own business or buying. We are taking back our shares. Beyond those opportunities, we consistently return excess capital to shareholders. In the third quarter, we repurchased $650 million of our common shares and another $250 million of our common shares. $665 million in October. Year-to-date, that brings total capital return to shareholders to roughly $3.5 billion through both buybacks and common stock dividends. Liquidity remains strong. The holding company cash and liquid assets totaling $3.4 billion at quarter's end. To close, the recurring revenue model on the new frontier is firing on all cylinders. We have market-leading businesses, two complementary earnings engines. and a disciplined approach to capital allocation. Together, they produce durable earnings, recurring free cash flow, and multiple avenues for profitable growth. We regularly pressure test our strategy with our board of directors.

Including an in-depth review during the third quarter. That work reinforced our conviction in New Frontier and in MetLife's standing as a Quality Compounder, a company capable of delivering differentiated earnings. Growth, attractive returns, and consistently returning capital to shareholders. This was a record quarter, but the more important point is the pattern behind it. The model is working. The breadth of growth is increasing. And we are executing with discipline. With that, I'll turn it over to John to walk through the results in more detail.

Thank you, Michelle, and good morning, everyone. As Michelle outlined, we continue to see strong women. momentum across the enterprise. And what stands out is the quality of that growth. We're generating attractive returns, maintaining expense discipline, and deploying capital into opportunities that create long-term value. Those are important characters. Characteristics of our model. They allow us to invest in growth, generate strong free cash flow, and return excess capital to shareholders, all while maintaining a strong balance sheet. I'll walk through the third quarter results and then spend some time on several proof points behind that performance, including our expense discipline, the returns we're generating on new business, the quality of our investment portfolio, and our cash and capital position. Starting on page three, we again exceeded our key financial commitments. Adjusted EPS, excluding notable items, grew 22%, well above our double-digit target. An adjusted ROE, excluding notables, was 19.6% on track to exceed our annual 15 to 17% target range. Our direct expense ratio was 11.9%, keeping us on track to beat our 12.1% annual target. And importantly, these results built on strong performance throughout the year. Year-to-date adjusted EPS excluding notable items is up 22% and adjusted ROE is above 17%. For the quarter, net income was $2.4 billion or $3. 67 cents per share. Adjusted earnings were $1.8 billion or $2.78 cents per share. Net income exceeded adjusted earnings by about $570 million.

Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. We ask that you pick up your handset when asking a question to allow for opt- minimum sound quality. And if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster.

Your next question comes from the line from Sunit Kama from Jeffries. Your line is open. Please go ahead.

Thanks.

Good morning.

Just on Group Life, you know, we've seen. This working age mortality phenomenon, you know, continue to benefit the industry as a whole and you guys as well. Is your sense that and again, I think we've talked about this in the past that some of it could be COVID pull forward and those types of things. But is your sense that we're sort of running its run? Of course, at this point, or would you expect that this favorability, you know, could continue? And at what point does it sort of get factored into pricing?

Hey, it's Rami.

YOUR NEXT QUESTION COMES FROM THE LINE OF TOM GALLAGER FROM EVERCORE ISI. YOUR LINE IS OPEN. PLEASE GO AHEAD.

THANKS. FIRST QUESTION FOR RAMI. HOW DO YOU SEE THIS PRICING FOR DISABILITY SITUATION PLAYING OUT GIVEN RECENT COMPETITOR ELEVATED CLAIMS? YOU MENTION YOUR OWN CLAIMS ARE A BIT ELEVATED. BECAUSE CLAIMS ARE ELEVATED. BUT THE ROES IN THE BUSINESS ARE STILL VERY GOOD, I BELIEVE. YOU KNOW, SHOULD WE THINK ABOUT IT AS MAYBE A SOFT MARKET NEUTRALIZING ON PRICING OR DO YOU THINK THIS ACTUALLY HARDENS THE MARKET AND WE START TO SEE RATE INCREASES HERE?

THANKS, TOM.

I THINK, LOOK, AS AN INDUSTRY, WE ALWAYS SAID AND WE STILL SEE THIS TO BE A COMPETITIVE BUT RATIONALLY PRICED INDUSTRY. SO WHEN YOU SEE AN UPTICK IN TREND, WE HAVE SEEN THE INDUSTRY REACT AND LOOK TO GET BACK TO ITS TARGET MARGINS AND A LOT OF THAT IS DRIVEN BY THE VERY SHORT-TAIL NATURE OF THE BUSINESS AND THE ABILITY TO REPRICE. AND WE ARE A MARKET LEADER HERE AND WE CONTINUE TO LEAD THE WAY. SO YOU SAW US DO THAT IN DENTAL LAST YEAR. YOU SAW US COMING INTO THIS YEAR WITH AN EXPECTATION OF RISING INCIDENTS AFTER WHAT HAS BEEN A FEW GOOD YEARS. AND WE BAKE THAT INTO OUR PLAN. WE BAKE THAT INTO TREND. AND SO THAT'S KIND OF PART OF HOW WE APPROACH THIS. THE OTHER PIECE I WOULD SAY WHEN WE LOOK AT IT, THE POWER OF DIVERSITY. FOR US IS REALLY IMPORTANT, RIGHT? AND THAT MEANS THAT WHEN WE LOOK AT AN ACCOUNT-BY-ACCOUNT BASIS, WE TYPICALLY HAVE A BUNDLE. WE DON'T HAVE A SINGLE PRODUCT. AND WE'RE THEREFORE ABLE TO MAKE THE BUNDLE. ATTRACTIVE, GET THE RIGHT ECONOMICS AT AN ACCOUNT LEVEL, AND GET THOSE RATE INCREASES THAT WE NEED, BE IT IN DISABILITY OR OTHER LINES. SO THIS IS VERY MUCH A STRATEGY THAT IS SITTING AT THE ACCOUNT LEVEL. BUT AGAIN, TO YOUR OVERALL QUESTION, WE THINK PRICING WILL REFLECT EXPERIENCE. WE CERTAINLY HAVE BEEN PLANNING FOR AN ADDITIONAL UPTICK IN TREND IN DISABILITY AND ARE ALSO PLANNING FOR THAT NEXT YEAR, AND THAT'S REFLECTIVE IN OUR PRICE.

GOTCHA. THANKS.

THANKS FOR THAT.

FOLLOW UP. JOHN, CAN YOU COMMENT AT ALL WHERE YOU STAND ON CAPITAL MANAGEMENT AS IT RELATES TO? POTENTIAL RISK TRANSFER DEALS WITH METLIFE HOLDINGS OR POTENTIAL REINSURANCE WITH CHARIOT RE. ANY UPDATES OR WHERE DO YOU SEE THAT MARKET EVOLVING FOR YOU?

YEAH I THINK YOU KNOW I WOULD SAY THINGS HAVEN'T CHANGED BROADLY SPEAKING WHEN IT COMES TO RISK TRANSFER OR LEVERAGING CHARIOT I'D SAY JUST ON THE CHARIOT SIDE WE CONTINUE TO PROGRESS WE ACTUALLY JUST YOU KNOW HAD ANOTHER DEAL CLOSE AT THE YOU KNOW THE END OF THE QUARTER AND YOU KNOW AGAIN IF YOU JUST STEP BACK AND THINK ABOUT WHAT WE WERE TRYING TO ACCOMPLISH THERE WE SEE A LOT OF ATTRACTIVE OPPORTUNITIES TO GROW RETIREMENT BUSINESSES WE CAN DO THAT BY LEVERAGING THIRD PARTY CAPITAL THAT THEY'RE CAPITAL CAN RESULT IN ADDITIONAL MIM FEES FOR US SO WE ARE STILL LOOKING AT CHARIOT AS A STRATEGIC GROWTH OPPORTUNITY FOR US YOU KNOW ON THE RISK TRANSFER SIDE AND MAYBE I'LL HAVE RAMI YOU KNOW SHARE SOME INSIGHTS JUST FROM HIS PERSPECTIVE BUT I WOULD SAY UM NOTHING HAS CHANGED FROM OUR PERSPECTIVE WE CONTINUE TO LOOK UH AND TALK WITH THIRD PARTIES AND AT THE SAME TIME WHERE WE HAVE UM YOU KNOW NO NO BURNING PLATFORM TO BEFORE YOU İTRIK LESS THING怎 TO BUT YOU KNOW AT THE SAME TIME WHERE YOU DON'T THINK YOU DON'T THINK YOU WANT TO REMInFORN HAVE TO DO ANYTHING BUT IF WE SEE GOOD OPPORTUNITIES OUT THERE AND WE DO SEE MARKETS CONTINUING TO EVOLVE THEN UH YOU KNOW WE WOULD LOOK TO YOU KNOW TAKE ADVANGE OF THAT NOW IF YOU WANT TO ADD ANYTHING RIGHT NO I THINK YOU'VE CAPTURED IT WELL JOHN NOTHING TO ADD HERE

THANKS YOUR NEXT QUESTION COMES FROM THE LINE OF WES CARMICHAEL FROM WELLS FARGO YOUR LINE IS OPEN PLEASE GO AHEAD HEY THANKS

GOOD MORNING JUST THE FIRST ONE ON RIS SPREAD I THINK THE BASE SPREAD TICKED DOWN MAYBE A BASIS POINT TO 99 BASIS POINTS IN THE QUARTER BUT YOU KNOW LONG-TERM RATES HAVE BEEN A LITTLE BIT MORE VOLATILE RECENTLY SO I'M JUST WONDERING HOW YOU'RE SEEING BASE SPREAD TRENDING FROM HERE GOOD MORNING WES JUST MAYBE START WITH OVERALL OBVIOUSLY WE'RE ABOVE THE RANGE IN TOTAL WE'RE AT 130 BASIS POINTS IN THE QUARTER SO YOU KNOW UP SEQUENTIALLY AND CERTAINLY THE VII DROVE THE BEAT WHILE COURSE SPREAD REMAINED VERY STABLE WITHIN OUR 95 TO 100 THAT RANGE THAT WE'VE REFERENCED IN THE PAST YOU KNOW AND THEREFORE IN LINE WITH EXPECTATIONS YOU KNOW WE YOU KNOW WHILE RATES HAVE BEEN VOLATILE I THINK YOU KNOW WHAT WE'VE TALKED ABOUT IS THAT WE'VE WE SEE WE CONTINUE TO SEE STABILITY IN THE SPREAD AND PROBABLY THAT WOULD BE OUR SENSE FOR FOURTH QUARTER FOURTH QUARTER AS WELL WE STILL BELIEVE ON A CORE BASIS THAT WE SHOULD BE WITHIN THE 95 TO 100 SO THAT STABILITY WILL REMAIN AND THEN YOU KNOW FROM A VII PERSPECTIVE WE'RE ASSUMING WE GET BACK TO THE NORMAL 400 MILLION RUN RATE SO WE WOULD BE WITHIN THE 100 TO 120 COME 4Q FOR RAS

ALL RIGHT THANKS JOHN AND JUST MAYBE A HIGHER LEVEL QUESTION ON CAPITAL AND MAYBE IT TIES INTO THE VNB AND PAYBACK PERIOD DISCUSSION BUT JUST LOOKING FORWARD I'M WONDERING IF YOU SEE IN THE DIRECTION OF TRAVEL FOR FREE CASH FLOW CONVERSION CHANGING AT ALL I KNOW YOU HAVE YOUR TWO-YEAR TARGET OF 65 TO 75% OF FREE CASH FLOW CONVERSION JUST WONDERING IF YOU'RE SEEING THAT CHANGE IN THE BUSINESS OR IF YOU'RE THINKING ABOUT INVESTING MORE INTO ORGANIC GROWTH GIVEN THE OPPORTUNITY SET YEAH I THINK TO YOUR POINT MAYBE A FEW FACTORS TO CONSIDER ONE YOU KNOW LET ME JUST START WITH WE STILL FEEL COMFORTABLE WITH OUR 65 TO 75% RANGE THAT WE'VE PROVIDED I THINK THE OTHER THING TO HIGHLIGHT THOUGH IS THAT YOU KNOW WE'VE SEEN GOOD GROWTH ACROSS ALL OUR BUSINESSES AND TO YOUR POINT WE WANT TO KIND OF MAINTAIN THAT GROWTH WE THINK WE CAN MAINTAIN AND SUPPORT THAT STRONG HEALTHY BREATH OF GROWTH THAT WE HAVE WHILE MAINTAINING OUR 65 TO 75% free cash flow ratio. I THINK IF YOU LOOK BACK, OUR GROWTH RATE RIGHT NOW AS A FIRM IS INCREMENTALLY STRONGER IN TOTALITY. OBVIOUSLY, WE HAVE LESS OF A RUNOFF BUSINESS THAN WE USED TO HAVE. I THINK ALL THE BUSINESSES ARE GENERALLY PERFORMING. PERFORMING WELL ACROSS THE BOARD. SO I THINK IF YOU TAKE THAT ALL INTO CONTEXT, YOU KNOW, CAPITAL GENERATIONS IS PROBABLY STRONGER, BUT OUR GROWTH IS ALSO HIGHER AND WE'RE STILL MAINTAINING OUR 65 TO 75% FREE CASH.

THANK YOU.

YOUR NEXT QUESTION COMES FROM THE LINE OF ALEX SCOTT FROM BARCLAYS. YOUR LINE IS OPEN. PLEASE GO AHEAD.

HEY, GOOD MORNING.

WANTED TO START ON EXPENSES. APPRECIATE YOU GUYS HAVE BEEN OUTPERFORMING THE EXPENSE RATIO GUIDANCE THAT YOU'VE THROWN OUT THERE. HOW DO YOU SEE THAT PROGRESSING AS WE THINK THROUGH, YOU KNOW, HAD AN END OF 2027? YEAH, HEY, ALEX, IT'S MICHELLE. YEAH, YOU'RE REALLY PLEASED WITH THE, YOU KNOW, CONTINUED EXPENSED DISCIPLINE, I WOULD SAY, THAT WE'RE SEEING. AND, YOU KNOW, KEEP IN MIND THAT WE'VE HAD TO ABSORB A HIGHER EXPENSE BUSINESS IN PIME BRIDGE THIS YEAR, THAT'S ABOUT 50 BASIS POINTS, AND YET WE'RE COMING, YOU KNOW, WE'RE EXPECTING TO COME IN BELOW THE... THE 12-1 TARGET FOR THIS YEAR. AND, YOU KNOW, WE'RE SEEING BENEFITS HERE FROM INVESTMENTS WE'VE MADE IN TECHNOLOGY. AI IN PARTICULAR HAS BEEN, I WOULD SAY, A... FORCE MULTIPLIER WILL CONTINUE TO DO SO AS WE MOVE FORWARD HERE. AND IT'S HELPING US BOTH ON THE EFFICIENCY FRONT AS WELL AS ON THE GROWTH AND REVENUE FRONT AS WELL, WHICH IS WHY WE LIKE, YOU KNOW, THE EXPENSE RATIO, DIRECT EXPENSE RATIO AS A PROCESS. IN TERMS OF THE PROGRESS WE'RE MAKING ON THAT FRONT AS WELL. SO ALL IN ALL, I WOULD SAY THERE'S GOOD INERTIA HERE. AND SO, YOU KNOW, AS WE LOOK FORWARD, I THINK, YOU KNOW, WE SEE OPPORTUNITY TO. CONTINUE TO DRIVE THAT RATIO DOWN. FOR THE TIME BEING, WE ARE STICKING WITH THE 11-3 RATIO THAT WE, YOU KNOW, TALKED ABOUT AT INVESTOR DAY. AND, YOU KNOW, THAT'S THE 20-29 RATIO. BUT, YOU KNOW, AND IF WE NEED TO UPDATE THINGS, WE'LL KEEP YOU POSTED.

GREAT. THAT'S SO HELPFUL.

JUST JAPANESE BUSINESSES CASH FLOW. YOU KNOW, OBVIOUSLY, THE ESR IS IN A HEALTHY SPOT. BUT COULD YOU TALK A BIT ABOUT JUST THE CASH FLOW YOU'RE SEEING FROM THAT BUSINESS? YOU KNOW, WE'VE SEEN SOME OTHER COMPANIES RAMP UP REINSURANCE TO, YOU KNOW, PROVIDE A LITTLE BIT MORE CASH OUT OF THE JAPANESE BUSINESS AS WELL. SO DO YOU HAVE ANY OPPORTUNITIES THERE TO DO REINSURANCE? YEAH.

HEY, ALEX, IT'S JOHN.

I'LL TAKE THAT ONE. REAL QUICKLY, YEAH, FIRST, AND MAYBE I'LL LET LYNDON COMMENT ON JUST, YOU KNOW, THE GROWTH, BUT WE'VE SEEN GREAT GROWTH IN THAT BUSINESS, AND, YOU KNOW, YOU LOOK OVER THE LAST FEW YEARS AND, YOU KNOW, HOW THAT BUSINESS HAS CONTINUED TO DRIVE THROUGH. INNOVATION AND THE DISTRIBUTION NETWORK WE HAVE, IT'S BEEN REALLY, REALLY STRONG AND INCREDIBLE. HAVING SAID THAT, YOU KNOW, WE DO LEVERAGE REINSURANCE AS WELL, INTERNALLY, AND WE HAVE BEEN DOING THAT, SO THIS IS, WE'RE REALLY NOT CHANGING TACT, WE'RE. KIND OF STAYING THE COURSE. SO, YOU KNOW, IN TIMES WE LEVERAGE FOR CERTAIN PRODUCTS, REINSURANCE AND OTHER ONES, YOU KNOW, WE DON'T. AND SO I WOULDN'T SAY THERE'S ANY OPPORTUNITY TO CHANGE WHAT WE'RE DOING. IT'S A CONTINUATION OF WHAT WE'RE DOING. OKAY. THANK YOU.

YOUR NEXT QUESTION COMES FROM THE LINE OF WILMA BURDUS FROM RAME.

HEY, GOOD MORNING.

COULD YOU BREAK DOWN THE TIMES IN THE QUARTER BETWEEN PRIVATE EQUITY AND VENTURE CAPITAL? IF YOU CAN ALSO PROVIDE THE BALANCES THAT WOULD BE HELPFUL AS WELL. AND MAYBE GIVE US ANY INDICATION OF WHAT YOU'RE THINKING IN THE 4Q ON THE VII SIDE. THANKS.

GOOD MORNING, WILMA.

HI. LET ME JUST START WITH MAYBE JUST A STEP BACK. I THINK WHAT'S REALLY IMPORTANT TO REMEMBER HERE IS THAT PRIVATE EQUITY IS, YOU KNOW, IT'S BEEN A LONG-TERM ALLOCATION FOR US TO MATCH UP WITH OUR LONGER-TERM LIABILITIES. SO THIS REALLY HASN'T BEEN A QUARTERLY TRADE KIND OF MENTALITY, RIGHT? THIS IS A PORT. PORTFOLIO THAT'S WELL DIVERSIFIED ACROSS 700 FUNDS, 200 MANAGERS, ACROSS STRATEGIES AND VINTAGES AND, YOU KNOW, OVERALL, JUST FROM A PERCENTAGE PERSPECTIVE, OUR V.C. PORTFOLIO MAKES UP ABOUT 25% OF OUR PEET. PORTFOLIO, AND, YOU KNOW, WE'VE BEEN A STEADY INVESTOR FOR DECADES, AND SO I THINK, YOU KNOW, I THINK THE HIGHLIGHT AND THE TAKEAWAY HERE IS Q3 REALLY SHOWS THE PAYOFF OF THAT APPROACH OVERALL, YOU KNOW, FROM AN OVERALL RETURN PERSPECTIVE. I THINK IN THE QUARTER, WE SAW AN ACTUAL RETURN IN VC FUNDS ABOVE 8%. AND SO IT'S A VERY STRONG RETURN IN THE QUARTER. EVEN BUT OTHER FUNDS PERFORM WELL, TOO. I THINK ON AVERAGE. THE PORTFOLIO HAD, AS WE SAID, OVER 4% RETURN AND SO OTHERS WERE ABOVE PLAN AS WELL. AS WE LOOK FORWARD, CERTAINLY YEAR TO DATE WE'RE AT ABOUT 1.5 BILLION SO WE EXPECT TO BE ABOVE. OUR 1.6 BILLION GUIDE THAT WE PROVIDED AS PART OF THE OUTLOOK CALL. BUT AT THIS JUNCTURE, WE DON'T REALLY HAVE MUCH BETTER INFORMATION OTHER THAN TO ASSUME THAT WE'LL STICK TO OUR QUARTERLY RUN RATE OF 400 MILLION FOR 4Q. AS WE GET CLOSER, AS WE'VE DONE IN THE PAST, WE'LL ALSO PROVIDE AN EARLY DISCLOSURE AROUND WHERE WE ARE COME THE END OF THE QUARTER.

THE V.C. PORTFOLIO AND THE PRIVATE EQUITY PORTFOLIO, COULD YOU TALK ABOUT THE RECENT PERFORMANCE AND HOW MUCH HAS BEEN DRIVEN BY REALIZED EXITS VERSUS, I GUESS, MARKS OR INCREASES IN VALUATION IN ANY COLOR, I GUESS. I GUESS ON POTENTIAL AI EXPOSURE UPSIDE, HOWEVER YOU WANT TO DISCLOSE THAT, BUT ANY THOUGHTS ON THE AI IMPACT ON THOSE RETURNS? THANKS.

YOU KNOW, GENERALLY THE WAY IT WORKS IS THE MARKS ARE WHAT DRIVE AND THEN YOU HAVE REALIZATIONS WITHIN THE QUARTER THAT REALIZE THE MARKS. SO I WOULD JUST SAY AT THE HIGHEST LEVEL, WE HAD MORE REALIZATIONS THIS QUARTER THAN ANY OTHER QUARTER. THAT'S MAYBE I WOULD JUST START WITH. I DON'T HAVE THE EXACT NUMBER. PERCENTAGE, BUT WE WERE BACKED. WE HAD A HIGHER LEVEL OF REALIZATIONS, BUT WE ALSO HAD A HIGHER LEVEL OF MARK TO MARKET IN THE QUARTER. SO I THINK WE ARE STARTING TO SEE REALIZATIONS PICK UP, WHICH IS A GOOD SIGN. I ALSO THINK THAT HAS HELPED SOME OF THE PERFORMANCE IN THE PORTFOLIO. AT THE SAME TIME, WE WERE BENEFICIARIES OF MANY OF WHAT YOU REFERENCED. IN THE PORTFOLIO, WE HAVE PROBABLY ACROSS A GOOD 10 MANAGE. EXPOSURE TO SOME OF THE NEWSWORTHY NAMES THAT ARE OUT THERE ON AI. THAT CERTAINLY WAS A BENEFIT IN THE QUARTER.

YOUR LAST QUESTION COMES FROM THE LINE OF JACK MATTEN FROM BEMO CAPITAL MARKETS. YOUR LINE IS OPEN. PLEASE GO AHEAD.

HEY, GOOD MORNING.

FIRST ONE ON RIS, I HAVE TWO PARTS. FIRST, IS THERE ANY CHANGES TO RUN RATE EARNINGS COMING OUT OF THE ASSUMPTION REVIEW? AND SECONDLY, FOR THE MORE LONGEVITY-FOCUSED BUSINESS LINE, IS THE LOWER MORTALITY EXPERIENCE THAT YOU'VE SEEN CHANGES ANYTHING REGARDING RETURN HURDLES OR PRICING ON NEW BUSINESS? YEAH, I CAN TAKE THE FIRST JACKETS, JOHN.

THANKS FOR THE QUESTION.

I THINK REAL QUICKLY, THE NOTHING FROM THE ACTUAR- ASSUMPTION REVIEW WOULD CHANGE ONGOING RUN RATE, AND I THINK YOU CAN SEE WHERE WE'RE HEADED, AND ALSO WE'VE PROVIDED YOU A GUIDE IN TERMS OF WHERE WE LOOK TOWARDS FOR THE FULL YEAR IN THE FOURTH QUARTER, WHICH IS INDICATIVE OF WHAT WE BELIEVE RUN- RATE IS THERE. I'LL TURN IT OVER FOR THE SECOND QUESTION.

GOOD MORNING, JACK.

IN TERMS OF JUST THE PRICING, LOOK, WE HAD A MODEST ACTUAL ASSUMPTION REVIEW HERE IN OUR RATE IS DRIVEN BY KIND OF WHAT WE DO ON AN ANNUAL BASIS. IT'S A TRUE UP OF OUR BASELINE ASSUMPTIONS. IF YOU LOOK AT THE REVIEWS OVER THE LAST FOUR YEARS, WE SAW BOTH FAVORABLE AND UNFAVORABLE ADJUSTMENTS OF THE ACTUAL NET. NUMBER IN AGGREGATE WAS FAVORABLE. OUR LONG-TERM ASSUMPTIONS, WHICH INCLUDE MORTALITY IMPROVEMENTS OVER TIME, HAVE NOT CHANGED AND THERE'S KIND OF NO CHANGE IN OUR HURDLE RATES, IF YOU WILL, OR OUR PRICING. PHILOSOPHY HERE. MAKES SENSE. THANKS. THE SECOND QUESTION IS ON MIM. ANY COLOR ON DRIVERS OF NET FLOWS IN YOUR OUTLOOK FOR UNFORTUNATELY. INFLOWS OR YOUR PIPELINE IN THE END OF THE COMING QUARTERS IN TERMS OF THE MIX OF INFLOWS VERSUS OUTLOWS, ANY MEANINGFUL DIFFERENCE IN THE FEED RATE OR MARGIN PROFILE OF THE CURRENT MIX SHIFT THERE?

HEY JACK, IT'S JOHN AGAIN.

THANKS FOR THE QUESTION.

LET ME JUST START. WE ARE VERY PLEASED WITH THE PROGRESS THAT THE TEAM'S BEEN MAKING INTEGRATION EXECUTION. WE'VE LAUNCHED THE ONE BRAND, ONE MIM BRAND PLATFORM OVER THE SUMMER. SO VERY PLEASED OVERALL. AND, YOU KNOW, WE HAVE SEEN SOME EARLIER. PROBABLY RESULTS WERE AFFECTED BY THE TRANSACTION RELATED. YOU'VE SEEN SOME REVENUE SYNERGIES AND SOME MARK TO MARKET. YOU KNOW, AS WE TALKED ABOUT IN THE OPENING REMARKS, YOU KNOW, THE EARNINGS ARE UP 19% YEAR TO DATE. WE'VE SEEN EARNINGS BUILDING EVERY QUARTER. AND WE EXPECT THAT TO CONTINUE. WE'VE SEEN MARGINS EXPAND IN TERMS OF PROFIT MARGINS SEQUENTIALLY. AND ALSO, IF YOU KIND OF TAKE A QUICK, A CLOSER LOOK, YOU'VE SEEN A MORE PROFITABLE MIX EMERGING AND THE REVENUE YIELDS ARE UP ON TOP. FOR THAT, WE'VE SEEN THE INTEGRATION, YOU KNOW, ACCELERATE. AND SO WE'VE SEEN SOME EXPENSE SYNERGIES GET MATERIALIZED AND REALIZED THROUGHOUT THE YEAR. SO, YOU KNOW, OVERALL, ONE ON THE INTEGRATION PERFORMING WELL. ON A COMMERCIAL SIDE, I WOULD SAY MOMENTUM IS. STRONG. WE'VE ACTUALLY, EVEN THOUGH WE HAD SOME OUTFLOWS ON THE ROLL FORWARD THERE, WE'VE HAD, WE'VE WON MORE PRIVATE MANDATES THAN WE'VE HAD OUTFLOWS IN THE QUARTER. SO, OBVIOUSLY, THE PRIVATE MANDATES. MANDATES DO LAG, BECAUSE THE AUM BILLS AS THEY ARE, AS THOSE ASSETS ARE DEPLOYED. SO, THAT WAS IN BOTH OUR PRIVATE FIXED INCOME AND OUR PRIVATE CREDIT AREAS, AND, BUT, YOU KNOW, IN TERMS OF THE OUTFLOWS.

THOSE ARE GENERALLY BEEN IN MORE OF THE PUBLIC FIXED INCOME AREA. SO, I THINK, OVERALL, IF WE STEP BACK, YOU KNOW, AS WE SAID IN THE OPENING REMARDS, WE EXPECT TO BE WITHIN THE RANGE THIS YEAR, AND OUR CONFIDENCE IN HITTING OUR 2027 GROWTH TARGETS REMAINS THE SAME. THANK YOU.

YOUR NEXT QUESTION COMES FROM THE LINE OF PABLO SINGZON FROM JP MORGAN. YOUR LINE IS OPEN. PLEASE GO AHEAD.

HI.

THANKS FOR SPEAKING ME IN.

SO EARLY IN THE CALL, I THINK MICHELLE HAS MADE SOME COMMENTS ABOUT PRD TIMING. ARE YOU REFERRING TO A DEFERRAL TO THE FOURTH QUARTER OR DO YOU THINK IT'S MORE LIKELY THAT DEALS SHOW UP NEXT YEAR? AND I GUESS THE CONTEXT OF YOUR YOU'RE REFERRING TO A DEFERRING TO A DEFERRING TO A DEFERRING TO A DEFERRING THE QUESTIONS THAT SOME OF YOUR COMPETITORS HAVE TALKED ABOUT A CATCH UP AND FORK YOU, BUT I'M NOT SURE IF YOUR APPETITE ALIGNS IS THERE.

HEY, GOOD MORNING.

IT'S RAMI HERE. YOU KNOW, I THINK MICHELLE'S COMMENT, I'LL REITERATE. IT'S BROADER, RIGHT? SO WE HAVE AN OUTLOOK, A MEDIUM-TERM OUTLOOK FOR THIS MARKET THAT IS POSITIVE. WE THINK THIS SLOWDOWN YEAR-TO-DATE IN TERMS OF VOLUME IS JUST TIMING. WHEN YOU LOOK AT THIS FROM A STRUCTURAL PERSPECTIVE, EVERY SINGLE INDICATION THAT WE LOOK AT, BE IT IN TERMS OF FUNDING LEVELS, BE IT IN TERMS OF THE SURVEYS THAT WE DO WITH CORPORATE PLAN. SPONSORS AND THEIR DESIRE TO DE-RISK AND EXIT THEIR PENSION OBLIGATIONS ALL POINT TO A MARKET THAT STILL HAS A LOT OF RUNWAY TO GO. WE, AS YOU KNOW, PLAY IN THE LUMPY AND THE JUMPO END OF THE MARKET, WHICH IS ALWAYS GOING TO BE LUMPY. SO WE'RE COMING OFF A YEAR, LAST YEAR, WHERE WE DID $14 BILLION OF PRTs. WE DO HAVE A BACK-ENDED PIPELINE THIS YEAR. WE'VE GOT A FEW MORE DEALS COMING IN THE QUARTER. BUT I WOULD SAY JUST IF YOU STEP BACK, WE STILL SEE. WE'VE GOT A REALLY POSITIVE OUTLOOK AND MOMENTUM FOR THE BUSINESS, GIVEN ALL THE STRUCTURAL REASONS I MENTIONED.

THANKS, RAMI.

AND THEN SECOND QUESTION. MNA IS JUST MORE TOPICAL THAN LIFE INSURANCE THESE DAYS FOR VARIOUS REASONS. SO I GUESS, CAN YOU REMIND US ABOUT WHAT ASSETS YOU MIGHT BE INTERESTED IN BUYING AND, YOU KNOW, SORT OF THE GENERAL LUNTS YOU USE IN EVALUATING OPPORTUNITY? THANK YOU.

YEAH, HEY, HEY, PABLO, IT'S MICHEL. YEAH, I MEAN, I WOULD SAY NO CHANGE WHATSOEVER. IN TERMS OF OUR PHILOSOPHY OR APPROACH HERE, YOU KNOW, FIRST ORDER PRIORITY IS TO CONTINUE TO DEPLOY CAPITAL IN SUPPORT OF ORGANIC GROWTH, AND, YOU KNOW, YOU CAN SEE HOW, YOU KNOW, WE'RE DOING SO AT ATTRACTIVE RETURNS. AND WE SEE A LOT OF OPPORTUNITY TO CONTINUE TO DO SO. MNA IS A STRATEGIC CAPABILITY FOR US, BUT WE ARE VERY DISCIPLINED, AND MNA HAS TO CLEAR A HIGH BAR, I WOULD SAY, WHEN IT COMES TO HOW WE COMPARE ANY TRANSACTION TO OTHER POTENTIAL USES OF CAPITAL, INCLUDING BUYING BACK OUR OWN SHARES. THE TWO AREAS THAT WE, YOU KNOW, HAVE TALKED ABOUT AS POTENTIALLY AREAS OF INTEREST. ONE, ASSET MANAGEMENT. WE THINK THAT THIS IS A SPACE THAT'S GOING TO CONTINUE TO CONSOLIDATE. YOU KNOW, WE ARE ALSO SORT OF ATTRACTIVE IN TERMS OF WHAT WE BRING TO THE TABLE WHEN IT COMES. TO OUR CAPABILITIES, YOU KNOW, ESPECIALLY IF YOU THINK ABOUT, YOU KNOW, THE BROADER MET LIFE. YOU KNOW, WE DID A TRANSACTION LAST YEAR THAT WE'RE VERY PLEASED WITH, PINE BRIDGE. AND, YOU KNOW, THE WAY WE THINK ABOUT THIS IS, YOU KNOW, WE DON'T NEED ANYTHING TRANSFORMATIONAL. WE'LL BE LOOKING AT, YOU KNOW, THE TYPES OF ASSETS THAT CAN BRING AN ADJACENCY, A CAPABILITY, A SOLUTION OR SOLUTION. THAT CAN HELP ACCELERATE OUR GROWTH TRAJECTORY. SO THAT'S ONE AREA. THE OTHER AREA THAT I'VE MENTIONED IS GROUP, AND WHEREAS WE DON'T SEE ANY GAPS IN TERMS OF, YOU KNOW, WE HAVE THE WIDEST, DEEPEST PROCESS.

OFFERING, SOLUTIONS OFFERING IN THE INDUSTRY, WE'RE ALWAYS IN CONVERSATIONS WITH CUSTOMERS TO SEE IF THERE ARE, YOU KNOW, THINGS THAT WE SHOULD CONSIDER THAT ARE IMPORTANT TO THEM. AND, YOU KNOW, OUTSIDE OF THAT, YOU WOULD BE OPPORTUNISTIC. SO, BUT. THAT'S A LITTLE BIT SORT OF THE APPROACH AND THE PHILOSOPHY, WHICH, LIKE I SAID, IS UNCHANGED.

THANKS, MICHELLE.

THERE ARE NO. FURTHER QUESTIONS AT THIS TIME. I WILL NOW TURN THE CALL BACK TO JOHN HALL, TREASURER AND GLOBAL HEAD OF INVESTOR RELATIONS FOR CLOSING REMARKS.

THANK YOU VERY MUCH, OPERATOR, AND THANKS ALL FOR JOINING US ON A VERY BUSY MORNING. TAKE CARE AND ENJOY THE DAY.

THIS CONCLUDES TODAY'S CALL.

THANK YOU FOR ATTENDING.

YOU MAY NOW DISCONNECT.