Global insurer MetLife (NYSE:MET) reported revenue ahead of Wall Street's expectations in Q3 2026, with revenue up 14.6% year on year to $20.52 billion. Its non-GAAP profit of $2.78 per share was in line with analysts' consensus estimates.
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MetLife (MET) Q3 2026 highlights:
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Net premiums earned$11.82 billion vs analysts' consensus estimates of $12.32 billion (flat year on year, 4.1% miss)
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Revenue$20.52 billion vs analysts' consensus estimates of $19.83 billion, according to S&P (14.6% year-on-year growth, 3.5% beat)
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Pre-tax profit$3 billion (14.6% margin)
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Adjusted EPS$2.78 vs analysts' consensus estimates of $2.77, according to S&P (in line)
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Book value per share$59.41 vs analysts' consensus estimates of $59.75 (35.6% year-on-year growth, 0.6% miss)
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Market capitalization$63.97 billion
Revenue growth
Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the "float" (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities and other value-added services. MetLife's revenue grew at a sluggish 3.4% compounded annual growth rate over the last five years, falling short of our benchmark for the insurance sector.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. MetLife's annualized revenue growth of 7.6% over the last two years is above its five-year trend, suggesting some bright spots.
This quarter, MetLife reported year-on-year revenue growth of 14.6%, and its $20.52 billion of revenue exceeded Wall Street's consensus estimates by 3.5%.
Net premiums earned made up 69% of the company's total revenue during the last five years, meaning insurance operations are MetLife's largest source of revenue.
Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company's underwriting success and market penetration.
Book value per share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share, or BVPS, captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
BVPS is therefore a key metric to track for insurers and sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly used metrics like earnings per share.
MetLife's BVPS declined at a 6.2% annual rate over the last five years. However, BVPS growth has accelerated recently, reaching 15.5% annually over the last two years as book value per share rose from $44.53 to $59.41.
Over the next 12 months, consensus estimates call for MetLife's BVPS to grow by 10.3% to $59.75, a decent growth rate.
Key takeaways from MetLife's Q3 results
MetLife's revenue beat analysts' consensus estimates, but a miss on net premiums earned and EPS in line with Wall Street's consensus made for a weaker quarter overall. Shares remained flat at $103.01 immediately after the release.
To assess MetLife as an investment at its current price, consider the broader picture of valuation, business quality and the latest earnings. Read the free full research report for more on these factors .
