MetLife Subsidiary Swings to Profit, But 9-Month Income Dips on Accounting Change

TL;DR

**MLIC's Q3 profit rebound is a good sign, but the nine-month income drop due to an accounting change means investors should remain neutral on its immediate financial trajectory.**

AI Summary

Metropolitan Life Insurance Company (MLIC) reported a significant turnaround in net income, achieving $521 million for the three months ended September 30, 2025, compared to a net loss of $5 million in the same period of 2024. For the nine months ended September 30, 2025, net income attributable to MLIC was $1,055 million, a decrease from $1,884 million in the prior year, primarily due to a cumulative accounting change for an equity method investee at January 1, 2025, which reduced retained earnings by $1,074 million. Total revenues for the three months ended September 30, 2025, were $9,339 million, a slight decrease from $9,384 million in 2024, while nine-month revenues decreased to $28,755 million from $30,128 million. Key changes include a positive market risk benefit remeasurement gain of $175 million for the quarter, contrasting with a $482 million loss in 2024. Total assets slightly decreased to $367,773 million at September 30, 2025, from $369,796 million at December 31, 2024. The company also paid $2,185 million in dividends to MetLife, Inc. during the nine months ended September 30, 2025.

Why It Matters

This filing reveals a mixed financial picture for MLIC, a wholly-owned subsidiary of MetLife, Inc. While the quarterly net income rebound is positive, the significant year-over-year decline in nine-month net income, largely due to an accounting change, warrants investor scrutiny. The competitive landscape in insurance and annuities is intense, and MLIC's ability to generate consistent profits is crucial for MetLife's overall performance. Employees and customers might see this as a stable, albeit slightly less profitable, period for the core insurance operations, but the dividend payments to the parent company highlight the ongoing capital flow dynamics within the MetLife ecosystem. The market will be watching how MLIC navigates interest rate risks and investment volatility, which are key factors for insurance companies.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant decrease in nine-month net income attributable to MLIC, falling from $1,884 million in 2024 to $1,055 million in 2025, primarily driven by a $1,074 million cumulative accounting change. While the company reported a quarterly net income of $521 million, the overall decline in profitability and the inherent risks associated with economic conditions, global capital markets, and investment volatility, as detailed in the forward-looking statements, suggest ongoing challenges.

Analyst Insight

Investors should closely monitor MLIC's future filings for sustained profitability and the impact of the accounting change on its long-term financial health. Evaluate MetLife, Inc.'s consolidated results to understand the full picture, as MLIC is a wholly-owned subsidiary. Consider the broader economic environment and interest rate trends, which significantly influence insurance companies' investment income and liabilities.

Financial Highlights

debt To Equity

N/A

revenue

$9,339M

operating Margin

N/A

total Assets

$367,773M

total Debt

$1,295M

net Income

$521M

eps

N/A

gross Margin

N/A

cash Position

$6,640M

revenue Growth

-0.5%

Revenue Breakdown

Key Numbers

• $521M — Q3 2025 Net Income (Significant turnaround from a $5M net loss in Q3 2024.)
• $1.055B — 9-Month 2025 Net Income (Decreased from $1.884B in 2024, largely due to an accounting change.)
• -44% — 9-Month Net Income Change (Percentage decrease in net income attributable to MLIC from 2024 to 2025.)
• $1.074B — Accounting Principle Change Impact (Reduced retained earnings at January 1, 2025.)
• $9.339B — Q3 2025 Total Revenues (Slight decrease from $9.384B in Q3 2024.)
• $28.755B — 9-Month 2025 Total Revenues (Decreased from $30.128B in 2024.)
• $175M — Q3 2025 Market Risk Benefit Remeasurement Gains (Positive shift from a $482M loss in Q3 2024.)
• $2.185B — Dividends Paid to MetLife, Inc. (For the nine months ended September 30, 2025.)
• $367.773B — Total Assets (Slight decrease from $369.796B at December 31, 2024.)
• $149.295B — Fixed Maturity Securities (Largest investment category, increased from $140.832B at December 31, 2024.)

Key Players & Entities

• Metropolitan Life Insurance Company (company) — Registrant and wholly-owned subsidiary of MetLife, Inc.
• MetLife, Inc. (company) — Parent company of Metropolitan Life Insurance Company
• $521 million (dollar_amount) — Net income attributable to Metropolitan Life Insurance Company for the three months ended September 30, 2025
• $5 million (dollar_amount) — Net loss attributable to Metropolitan Life Insurance Company for the three months ended September 30, 2024
• $1,055 million (dollar_amount) — Net income attributable to Metropolitan Life Insurance Company for the nine months ended September 30, 2025
• $1,884 million (dollar_amount) — Net income attributable to Metropolitan Life Insurance Company for the nine months ended September 30, 2024
• $1,074 million (dollar_amount) — Cumulative effects of change in accounting principles for equity method investee at January 1, 2025
• $9,339 million (dollar_amount) — Total revenues for the three months ended September 30, 2025
• $2,185 million (dollar_amount) — Dividends paid to MetLife, Inc. for the nine months ended September 30, 2025
• September 30, 2025 (date) — End of the reporting period for the 10-Q filing

FAQ

Risk Factors

• Market Volatility Impact on Investments [high — financial]: The company's investment portfolio, particularly fixed maturity securities ($149.3B as of Sep 30, 2025), is subject to market fluctuations. A $175M gain from market risk benefit remeasurement in Q3 2025 contrasts with a $482M loss in Q3 2024, highlighting the volatility.
• Accounting Standard Changes [medium — regulatory]: A cumulative accounting change for an equity method investee at January 1, 2025, reduced retained earnings by $1.074B. Such changes can impact reported financial performance and require careful management and disclosure.
• Operational Complexity and Estimates [medium — operational]: The preparation of financial statements involves significant management judgment and estimates, particularly in areas like future policy benefits and policyholder account balances. Actual results may differ from these estimates.
• Interest Rate Sensitivity [high — financial]: As a life insurance company with significant fixed-income investments and long-term liabilities (Future policy benefits of $127.9B), MLIC is sensitive to changes in interest rates, which can affect investment income and the valuation of liabilities.
• Credit Risk in Investments [medium — financial]: The company holds substantial investments, including $149.3B in fixed maturity securities and $56.8B in mortgage loans, which carry credit risk. Allowances for credit losses are maintained, with $196M for fixed maturity securities and $740M for mortgage loans as of Sep 30, 2025.
• Contingencies and Guarantees [low — legal]: The company is subject to various contingencies, commitments, and guarantees as noted in Note 16. The nature and potential impact of these are not fully detailed but represent a potential financial or reputational risk.

Industry Context

Metropolitan Life Insurance Company operates within the highly competitive life insurance and employee benefits sector. Key industry trends include evolving customer demands for digital services, persistent low interest rate environments impacting investment yields, and increasing regulatory scrutiny. Companies are focusing on operational efficiency, product innovation, and managing investment portfolios to navigate these dynamics.

Regulatory Implications

As a major insurance provider, MLIC is subject to extensive state and federal regulations governing solvency, consumer protection, and financial reporting. Changes in accounting standards, such as the one impacting equity method investees, require careful compliance. Regulatory capital requirements and market conduct examinations are ongoing areas of focus.

What Investors Should Do

1. Monitor the impact of market risk benefit remeasurements.
2. Analyze the long-term effects of the accounting principle change.
3. Evaluate the growth and profitability of core segments.
4. Assess the stability and growth of the investment portfolio.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported $521M net income, a significant turnaround from a $5M loss in Q3 2024. Total revenues were $9,339M.
• 2025-01-01: Accounting Principle Change — An accounting change for an equity method investee reduced retained earnings by $1,074M, impacting the nine-month net income comparison.
• 2025-12-31: Prior Year-End Balance Sheet — Provided a comparison point for assets ($369,796M) and liabilities.
• 2024-09-30: Prior Year Quarter Reporting — Reported a $5M net loss and $9,384M in total revenues for Q3 2024, serving as a benchmark for the current quarter's performance.

Glossary

Variable Interest Entities (VIEs)

Entities for which the company may have a significant financial interest and control, requiring consolidation in financial statements. (Affects reported asset and liability balances, as seen in mortgage loans and real estate investments.)

Market Risk Benefits

Benefits that provide protection against market fluctuations, often involving complex financial instruments and valuations. (A significant component of assets and liabilities, with remeasurement gains/losses impacting net income, as seen in the Q3 2025 results.)

Deferred Policy Acquisition Costs (DAC)

Costs incurred in acquiring insurance policies that are capitalized and amortized over the expected life of the policies. (Represents a significant intangible asset on the balance sheet, impacting profitability over time.)

Equity Method of Accounting

An accounting method used for investments where the investor has significant influence but not control over the investee, affecting reported income and investment value. (A recent accounting change for an equity method investee significantly impacted retained earnings and reported net income.)

Fair Value Option (FVO)

An accounting election allowing certain financial instruments to be reported at fair value, even if not typically required. (Used for specific investments like real estate, impacting their reported value on the balance sheet.)

Accumulated Other Comprehensive Income (AOCI)

A component of equity that includes unrealized gains and losses on certain investments and foreign currency translations. (Reflects unrealized market impacts on the company's equity, showing a loss of $5,013M as of Sep 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, MLIC experienced a significant decrease in net income attributable to the company, largely due to a $1.074B accounting change impacting retained earnings. While Q3 2025 saw a strong net income turnaround ($521M vs. a $5M loss), overall nine-month revenues declined to $28.755B from $30.128B. Total assets saw a slight decrease to $367.773B from $369.796B at year-end 2024, and the company paid substantial dividends of $2.185B to its parent, MetLife, Inc.

Filing Documents

• mlic-20250930.htm (10-Q) — 5588KB
• mlic-2025930xex311.htm (EX-31.1) — 8KB
• mlic-2025930xex312.htm (EX-31.2) — 8KB
• mlic-2025930xex321.htm (EX-32.1) — 3KB
• mlic-2025930xex322.htm (EX-32.2) — 3KB
• 0000937834-25-000014.txt ( ) — 31602KB
• mlic-20250930.xsd (EX-101.SCH) — 103KB
• mlic-20250930_cal.xml (EX-101.CAL) — 89KB
• mlic-20250930_def.xml (EX-101.DEF) — 849KB
• mlic-20250930_lab.xml (EX-101.LAB) — 1362KB
• mlic-20250930_pre.xml (EX-101.PRE) — 1160KB
• mlic-20250930_htm.xml (XML) — 9121KB

— Financial Information

Part I — Financial Information Item 1. Financial Statements (Unaudited) (at September 30, 2025 and December 31, 2024 and for the Three Months and Nine Months Ended September 30, 2025 and 2024) Interim Condensed Consolidated Balance Sheets 4 Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 5 Interim Condensed Consolidated Statements of Equity 6 Interim Condensed Consolidated Statements of Cash Flows 7 Notes to the Interim Condensed Consolidated Financial Statements: Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies 8 Note 2 — Segment Information 10 Note 3 — Future Policy Benefits 16 Note 4 — Policyholder Account Balances 22 Note 5 — Market Risk Benefits 27 Note 6 — Separate Accounts 30 Note 7 — Deferred Policy Acquisition Costs, Value of Business Acquired and Unearned Revenue 33 Note 8 — Closed Block 35 Note 9 — Investments 37 Note 10 — Derivatives 54 Note 11 — Fair Value 66 Note 12 — Long-term Debt 81 Note 13 — Equity 81 Note 14 — Other Revenues and Other Expenses 84 Note 15 — Income Tax 85 Note 16 — Contingencies, Commitments and Guarantees 85 Note 17 — Related Party Transactions 88

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 91

Controls and Procedures

Item 4. Controls and Procedures 101

— Other Information

Part II — Other Information

Legal Proceedings

Item 1. Legal Proceedings 101

Risk Factors

Item 1A. Risk Factors 101

Other Information

Item 5. Other Information 101

Exhibits

Item 6. Exhibits 102 Glossary 103

Signatures

Signatures 105 Table of Contents As used in this Form 10-Q, "MLIC," the "Company," "we," "our" and "us" refer to Metropolitan Life Insurance Company, a New York corporation incorporated in 1868, and its subsidiaries. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, "MetLife"). Note Regarding Forward-Looking Statements This Quarterly Report on Form 10Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations, may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as "anticipate," "are confident," "assume," "believe," "continue," "could," "estimate," "expect," "if," "intend," "likely," "may," "plan," "potential," "project," "should," "target," "will," "would" and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections w

— Financial Information

Part I — Financial Information

Financial Statements

Item 1. Financial Statements Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Interim Condensed Consolidated Balance Sheets September 30, 2025 and December 31, 2024 (Unaudited) (In millions, except share and per share data) September 30, 2025 December 31, 2024 Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (net of allowance for credit loss of $ 196 and $ 112 , respectively); and amortized cost: $ 157,177 and $ 153,744 , respectively $ 149,295 $ 140,832 Mortgage loans (net of allowance for credit loss of $ 740 a nd $ 503 , respectively; includes $ 176 and $ 198 , respectively, relating to variable interest entities) 56,842 60,025 Policy loans 5,615 5,601 Real estate and real estate joint ventures (includes $ 1,966 and $ 2,000 , respectively, relating to variable interest entities; $ 382 and $ 378 , respectively, under the fair value option; $ 148 and $ 0 , of real estate held-for-sale, respectively) 9,015 8,902 Other limited partnership interests 6,898 7,054 Short-term investments, at estimated fair value 2,232 2,391 Other invested assets (includes $ 465 and $ 729 , respectively, of leveraged and direct financing leases; $ 46 and $ 112 , respectively, relating to variable interest entities) 15,899 17,674 Total investments 245,796 242,479 Cash and cash equivalents, principally at estimated fair value (includes $ 34 and $ 0 , respectively, relating to variable interest entities) 6,640 7,271 Accrued investment income 2,104 1,986 Premiums, reinsurance and other receivables 28,580 28,084 Market risk benefits, at estimated fair value 232 246 Deferred policy acquisition costs and value of business acquired 3,015 3,136 Current income tax recoverable 441 245 Deferred income tax asset 2,656 2,883 Other assets 4,228 4,264 Separate account assets 74,081 79,202 Total assets $ 367,773 $ 369,796 Liabilities and Equity Liabilities Future policy benefits $ 127,858 $ 126,619

Business

Business Metropolitan Life Insurance Company and its subsidiaries (collectively, "MLIC" or the "Company") is a provider of insurance, annuities and employee benefits. MLIC is organized into three segments: Group Benefits, Retirement and Income Solutions ("RIS"), and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. See Note 2 for further information on the Company's segments and Corporate & Other. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, "MetLife"). Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company's business and operations. Actual results could differ from these estimates. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2024 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report"), which incl

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