MetLife reported a 17% increase in adjusted earnings from its Asia segment for the third quarter of 2026, totaling $550 million. This marks the strongest quarterly performance from the region in at least three quarters, despite a 6% decline in quarterly sales compared to the previous year, which set a record.
Sales in the Asia region reached $728 million, reflecting a decrease of 6% on a constant currency basis. MetLife acknowledged that the third quarter of 2025 was exceptionally strong, with sales growing 34% during that period, particularly boosted by a 31% increase in Japan driven by new retirement products and a rise in foreign currency life sales.
Key Drivers of Earnings Growth
The earnings increase was supported by several factors, including variable investment income (VII), which soared due to higher private equity returns. The company reported group-level VII of $720 million pre-tax for the third quarter, significantly surpassing its quarterly target of $400 million. For the Asia segment, VII was complimented by higher recurring income from fixed-income investments, as the region benefited from reinvestment at increased yields.
Volume growth also contributed positively, with elevated fee income and net flows leading to a rise in average invested assets. As of September 30, 2026, Asia’s general account assets under management reached $145 billion, a 4% increase on a constant currency basis year-over-year.
Additionally, MetLife’s recent annual actuarial assumption review resulted in a $52 million favorable post-tax adjustment for the Asia segment, contrasting with a decline seen globally across most segments due to the review. This adjustment forms part of the reported earnings but is excluded from the more accurate underlying business measure.
Regional Performance: Japan and Korea
Year-to-date performance remains strong in the Asia region, with sales rising 10% on a constant currency basis, primarily fueled by Japan and Korea. Japan has shown consistent growth, with sales increasing by 26% in the first quarter of 2026 and 44% in Korea. This continues a trend of momentum in both markets throughout the year.
MetLife CEO Michel Khalaf highlighted Korea as one of the company’s top five global markets, emphasizing the company’s strategic focus on enhancing operations in these competitive markets. Recently, MetLife Korea relocated its headquarters in Seoul to streamline operations, while MetLife Japan unveiled a new brand identity to sharpen its market presence.
Challenges and Market Outlook
The report mentioned that earnings growth in the Asia segment was “partially offset by less favorable underwriting,” a shift from earlier quarters where underwriting was generally supportive. The details on specific challenges faced were not disclosed, but prior reports indicated variability in Japan’s foreign currency product mix and certain health lines in Korea as potential concerns.
As MetLife approaches the final quarter of 2026, it will monitor underwriting performance closely, especially in light of strong sales volumes. Despite the quarterly sales dip, the overall growth trajectory and strategic initiatives position MetLife’s Asia segment as a reliable contributor to the company’s earnings through the end of the year.
On a broader scale, MetLife reported adjusted earnings of $1.8 billion group-wide for Q3 2026, an increase of 12%. The adjusted earnings per share, excluding notable items, reached $2.85, marking a record high for the company.
