Key Highlights

  • Net income rose 187% to USD 2,351 million, or USD 3.67 per share, from USD 818 million, or USD 1.22, driven by net derivative gains and higher adjusted earnings.
  • Adjusted earnings, a non-GAAP measure, rose 12% to USD 1,780 million, or USD 2.78 per share, up 17%, while excluding notable items they were USD 2.85, up 22%.
  • Premiums, fees and other revenues increased 12% to USD 14,056 million, and adjusted premiums, fees and other revenues excluding pension risk transfers rose 8% to USD 13,525 million.
  • Book value per share fell 22% to USD 30.73, while adjusted Book Value per share rose 5% to USD 59.41, and about USD 1 billion was returned to shareholders.

Derivative Gains Inflate Net Income Beyond the Core Improvement

MetLife (NYSE:MET) announced third-quarter 2026 results on November 4, 2026, calling it the highest quarterly adjusted Earnings per share in company history. Net derivative gains were USD 698 million before tax, or USD 551 million after tax, mostly gains on embedded Derivatives tied to ceded Reinsurance as U.S. interest rates rose. Net Investment losses were USD 430 million before tax, or USD 340 million after tax. Total revenues were USD 20,522 million against USD 17,361 million. Return on Equity was 42.7%, versus 13.1%, while adjusted return on equity was 19.2% against 16.9%. Net income per share rose 201%.

Adjusted Earnings Benefit From Variable Investment Income and Volume

Adjusted earnings grew 12% as reported and 13% in constant currency, helped by higher variable investment income, broad Volume growth and favorable underwriting. Adjusted net investment income increased 10% to USD 6.0 billion. Group Benefits adjusted earnings rose 15% to USD 523 million, Asia rose 11%, Latin America rose 45%, EMEA rose 24% and MetLife Investment Management rose 9%, while Retirement and Income Solutions fell 6%. An annual actuarial assumption review reduced net income by USD 56 million and adjusted earnings by USD 46 million. The expense ratio was 21.3% versus 21.7%, and the direct expense ratio was 11.9% against 11.6%.

Why Book Value Fell While Capital Returns Continued

Book value per share dropped to USD 30.73 from USD 39.52, even as net income surged, and the release does not detail the cause in the portion reviewed. Adjusted book value per share, which excludes most components of accumulated other comprehensive income such as unrealized investment gains and losses, increased to USD 59.41 from USD 56.57. MetLife (NYSE:MET) returned about USD 1 billion through share repurchases and common stock dividends in the quarter, and held USD 3.4 billion of cash and Liquid assets at the holding company, within its target range. Management said it is on track for its free Cash Flow ratio and direct expense ratio targets for the year. Interest Rate moves, investment returns and Underwriting results remain the key swing factors.

Where Things Stand

Net income jumped largely because of derivative gains, so the core improvement is better measured by adjusted earnings, which rose 12% and 17% per share. MetLife (NYSE:MET) paired that with 12% growth in premiums, fees and other revenues and about USD 1 billion of capital returns. Book value per share fell 22%, and the release excerpt does not explain why. No numeric guidance was reviewed beyond year targets for free cash flow and direct expenses. Watch variable investment income, pension risk transfer volume, the book value trend and the Holding Company liquidity.