MetLife, Inc.’s MET Group Benefits business is emerging as a key source of earnings momentum, supported by stronger underwriting and steady demand for employee benefits. In the second quarter of 2026, the segment’s adjusted earnings rose 25% year over year to $503 million. The gain reflected solid volume growth and improved life underwriting. Group Life’s mortality ratio was 79% in the second quarter, below MET’s 2026 target range of 83% to 88%.
The business is benefiting from its broad portfolio of employee benefits, including group life, dental, disability and voluntary products. MET’s scale in the U.S. group benefits market also provides a wide distribution network and opportunities to deepen relationships with employers and employees. These factors could support top-line growth as companies continue to prioritize benefits as part of their employee offerings. Adjusted premiums, fees and other revenues (PFOs), excluding participating contracts, rose 4% year over year in the second quarter of 2026.
Year to date, the unit’s sales increased 9%, with regional business up 11%, led by the under-1,000 employee market. Higher employee participation, solid persistency and rising demand for voluntary coverage are supporting the franchise. The non-medical health interest-adjusted benefit ratio also improved to 73.9% in the second quarter of 2026 from 74.8% a year ago.
However, some of the second-quarter mortality benefit may not persist. About two percentage points of favorability reflected prior-period development and lower-than-expected claim severity, factors expected to normalize in the second half. Steady sales, persistency and diversified product demand could help Group Benefits maintain momentum, though earnings growth may moderate if underwriting benefits ease.
How Are Competitors Faring?
Some of MET’s competitors in the insurance space include The Hartford Insurance Group, Inc. HIG and Aflac Incorporated AFL.
The Hartford’s Employee Benefits business continues to expand, with fully insured ongoing premiums up 5% year over year in the second quarter of 2026. Fully insured ongoing sales jumped 31% year over year, supported by rising group disability and group life sales. However, a higher disability loss ratio weighed on HIG’s earnings.
Aflac’s U.S. business continues to benefit from demand for group voluntary benefits, network dental and vision products. Aflac U.S. sales increased 2.6% year over year in the second quarter of 2026, while net earned premiums rose 2.3%. However, higher benefits pressured pretax adjusted earnings, which declined 4.6% year over year.
MET’s Price Performance, Valuation & Estimates
In the year-to-date period, MET’s shares have risen 22.6% compared with the industry’s growth of 2.5%.
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From a valuation standpoint, MET trades at a forward price-to-earnings ratio of 9.26, above the industry average of 8.95. MetLife carries a Value Score of A.
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The Zacks Consensus Estimate for MET’s 2026 earnings implies 10.8% growth from the year-ago period.
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MetLife currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MetLife, Inc. (MET): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).