MetLife Performing Well So Far, but Variable Investment Income Likely Still Elevated

No-moat MetLife is off to a good start in 2022. Adjusted earnings per share in the first quarter came in at $2.08, well ahead of the FactSet consensus estimate of $1.65. Variable investment income continues to be elevated, though it was down year over year. Variable investment income is primarily private equity returns and is reported on a lag. As a result, we expect this to decline more meaningfully in the coming quarters as public and private company valuations have turned south. Overall, there was little in the press release that would alter our long-term view of MetLife, and we will maintain our fair value estimate of $56 per share.