Analyst Note| Rajiv Bhatia, CFA |
MetLife reported a big earnings beat in the third quarter with adjusted EPS of $2.39 easily topping the FactSet consensus of $1.74. Like its peer Prudential Financial, MetLife reported a big jump in variable investment income. Private equity returns were strong though we expect this to normalize. From an underwriting perspective, mortality was elevated in the Americas as death rates have risen. During its actuarial review, the firm lowered its earnings rate assumption in Japan. Overall, there was little in MetLife's financial results that would materially alter our long-term view of the no-moat firm, and we will maintain our $49 fair value estimate.