Wes Carmichael

McCallion reaffirmed a 95 to 100 basis point core spread range, guiding Q3 toward the midpoint on a seasonal real estate income reversal.

Tadros pointed to Q1 flu seasonality and reiterated about two points of mortality normalization not expected to repeat in H2.

Michel vigorously disputed the claim, noting MetLife was not a defendant, Sun Life has taken no legal action, and there are no proceedings between the parties.

John noted Q2 improvement expected from lower asset rotations but flat yield curve is a headwind. Total spreads tracking to full year 100-120 bps range.

Ramy Tadros attributed ~1pt disability pressure to higher average LTD severity, lower Social Security decisions, slightly lower recoveries, and slightly higher incidents, all within pricing expectations for the full year. Cautioned against extrapolating one quarter into 2026.

Ramy Tadros placed PFML within broader disability growth strategy driven by secular trends and state-based regulations. MetLife's absence and disability serves as anchor product, vast majority of sales bundled with full product suite. PFML sales averaging 4-5 additional bundled coverages per deal.

John McCallion noted spreads ex-VII up 1bp to 102bps, better than guided. Q4 expected relatively flat with potential 1-2bp temporary headwind from repositioning assets on large PRT mandates won in Q4.

John McCallion congratulated Brighthouse team on Aquarian deal. Confirmed key MetLife relationship is asset management, emphasizing unique capabilities that help Brighthouse achieve strategic objectives. Did not disclose specific AUM managed.

Ramy Tadros noted FABN program represents ~10% of GA liabilities with $6-8B annual issuance at favorable funding costs. Welcomes new market entrants as they attract more investors and establish FABN as a wider asset class.

Lyndon Oliver confirmed surrenders normalized to expectations. Higher yen rates improve yen product economics, giving more product options. USD-yen rate differential sustains FX product attractiveness. John McCallion quantified underwriting impact at roughly $15-20M.

John McCallion noted PE returned 1.6% with over $600M in distributions from seasoned portfolio. Plans to provide preliminary Q2 VII disclosure in early July given unusual environment rather than attempt a forecast now.

John McCallion said operational readiness is strong for April 1 ESR implementation. MetLife always priced under economic framework so no behavioral change expected. No indication it would change Japan dividend policy.

Ramy noted more activity in risk transfer market. John explained LTC is still growing liabilities and not providing much cash flow currently.

Ramy attributed favorable mortality to CDC population data trends for working-age population flowing into MetLife's ratios.

Svoboda said a higher stock price does not deter buybacks, still the predominant use of excess cash, and the company stays open to M&A only if it fits strategy, products and distribution.

Darden was pleased first-year AIL lapses normalized; renewal lapses remain modestly above pre-pandemic levels and are expected to stay in that range as a reasonable baseline.

No new developments. Working through audit of Bermuda entity financials. Reciprocal jurisdiction filing planned for Q2. More significant update expected on next call. No 2026 FCF benefit in guidance.

Q1 benefited from new-business pricing at higher rates. Q2/Q3 still expected to grow slightly YoY. Q4 faces toughest comp (doubled prior year). Not a softening, just high hurdle from massive 2025 growth. Medicare Advantage tailwind dynamics being monitored.

$1.2B statutory reserves transferred to establish entity with auditable 2025 financials. Path to reciprocal jurisdiction requires 2 accounting periods. Plans to add new business and incremental in-force in 2026. Entity growth over 3-5 years toward $200M annual parent FCF uplift.

Early approval possible but subject to regulatory discretion (mid-year timeline). Any 2026 distributions would come at year-end and are NOT in guidance. 2027 expected to be first year with Bermuda benefit. $200M target over time still intact.

BMA approved business plan, company established, licensing and U.S. regulatory approvals in process. $200M trending-over-time target unchanged. More guidance expected early 2026 once final approvals received.

Minimal sensitivity: ~$1M per 100bp rate change. Floating rate assets well matched with floating rate liabilities and floating rate debt, creating natural offsets.

Channel shifted to 75-80% digital. Data-driven underwriting automation eliminates follow-up friction, improving conversion. Higher conversion lifts ROI on marketing spend, enabling reinstatement of previously unprofitable campaigns. No impact on admin expenses - all costs are deferred acquisition costs.

Some lapse expected but not large-scale given industry-wide pricing and Medicare Advantage dissatisfaction providing tailwind.

Included in guidance but depends on detailed assumption-setting across issue years/ages/genders. Q2 experience will inform final determination. Minor changes in assumptions can swing the number.

Attributed to litigation settlements (not DOJ/SEC/EEOC) and short-seller related legal costs. Targeting commercial paper reduction to low $300s from $415M.

Management will continue looking for opportunities to release additional capital and may front-end load buybacks slightly. Believes stock remains a good buy.

Del Frias attributed the GUL update to a small surrender/policyholder-activity assumption change reflected in AOI and said, based on what they see through Q2, they do not expect a material statutory impact, without sizing the GUL charge.

Del Frias said capital-deployment priorities are unchanged and that the bar on issuing equity or adjusting buybacks is very high, requiring a clear path to value creation, with balance-sheet optimization and reinsurance as alternative capital sources.

Del Frias explained GUL losses are GAAP reserve build timing that will reverse over time. Passed loss recognition testing as of 3/31. Sullivan highlighted go-forward Individual Life quality now visible.

Del Frias confirmed analyst's ~$600M run-rate math after adjusting for prepays and noise. Emphasized YoY growth driven by retail annuity and institutional sales momentum.

Yanela confirmed ESR well above 150% target even after sharp January rate increase. Cushion absorbed some rate impact. From current 30-year rate above 3.5%, additional 90-100bp rise would still keep ESR within operating target range.

Yanela provided Q4 surrender rate of 6.3% vs 5.6% Q3. Customers with heightened FX sensitivity have already surrendered leaving less sensitive block. $50M estimated 2026 earnings impact from 2025 surrenders. POJ misconduct surrender estimates informed by post-press release observations.

Yanela explained fixed annuity reserve refinements accelerating GAAP reserve recognition timing. No impact on statutory results, capital, cash flows, or expected lifetime economic outcome.

Andy highlighted 60% year-to-date sales growth (corrected to 13% YTD by IR), 96% persistency, 80.9% benefit ratio. Plans to continue investing and have group become larger percentage of business over time.

Yanela explained 70% of U.S. dollar Japan business reinsured, long history of utilizing reinsurance, product design influenced by capital optimization, and general discipline across all businesses.

Andy cited $25B in total flows over 12 months ($16B affiliated, $9B third-party). Optimistic on institutional continuing, more cautious on retail given money on sidelines. Changes in PGIM model will be net positive over longer timeframes.

Yanela said ESR reporting starts March 2026, with preliminary information planned for summer. Transactions already executed to mitigate volatility.

Caroline explained episodic large claims from legacy Hartford block, COVID transitioning to endemic state, and GUL in-force reduced by 60%.

Andy deferred specific strategy details, noting he is not yet in the role, but expressed confidence in strong opportunities.

Joel pleased with in-line VII, noted no real estate transactions in H1 and reiterated expected improvement through 2026.

Amy gave strategic rationale (SMB reach, 25k employers, digital distribution); Joel confirmed funding intact with no guidance change.

Chris noted Q1 driven by strong transfer deposits, very strong contract retention, healthy recurring deposits and stable withdrawal rates. Q1 historically strongest quarter. Remaining quarters impacted by elevated markets increasing withdrawals plus large case lumpiness.

Amy acknowledged positive mortality volatility but guided full year margin toward lower end of 12-16% range. Deanna highlighted favorable results in both incidents and severity split approximately 50-50 which is unusual since volatility typically comes from severity.

Joel acknowledged merit in better reflecting total return by adjusting real estate depreciation treatment. Outlook based on excess fee basis so any definitional change not contemplated in guidance. VII expected to improve in 2026 versus 2025.

Kamal noted typical performance fee range of $30-40 million annually. No significant changes expected for 2026 versus 2025 trajectory.

Joel noted VII performed well across all asset classes in Q3. Real estate had a $25M gain below the line from a Q3 transaction not in operating earnings. More transaction activity expected in Q4 as signaled. Very optimistic for second half trajectory.

Joel broke down two-thirds model refinements adding sophistication to policyholder behavior modeling, one-third experience updates across multiple products with no single driver. GAAP only, noncash, no free capital flow impact. Immaterial to ongoing run rate and does not impact outlook.

Kamal explained performance fees came from direct lending and real estate debt rather than traditional real estate equity. Diversifying the performance fee base. Full year levels expected similar to 2024 with some fees pulled forward from Q3 into Q2.

Chris confirmed target date with guarantee launched off platform in Q1 2025 and rolled on platform in Q2. Client takeup beginning but very early innings. Good opportunity as advisors and sponsors become more accustomed to the product.

Joel noted VII in line with recent quarters, 50% of alts in real estate not marked quarterly. Majority of RE transactions expected in H2. Hedgefund returns slightly lower.

Amy detailed dental pricing actions flowing through, increased competition from mutuals and medical carriers. Bundle approach at all-time high coverages. Persistency exactly in line.

Max Broden confirmed the rule of thumb still holds and said Aflac manages its business and risk profile including USP, which better reflects the risks.

Dan Amos said he would still be happy with JPY 80 billion in sales, which remains possible, and reaffirmed 2026 sales will exceed 2025.

Max explained corporate segment driven by short-term rates on holdco cash, plus 8%/year natural decay on runoff reinsurance blocks. Expects slightly negative pretax in Q2.

Yoshizumi confirmed momentum continuing with a system for all three products to be sold concurrently, expecting 2026 sales equivalent to 2025.

Max confirmed ample capital for M&A but emphasized operational and strategic fit must come first. Acknowledged niche businesses make finding and integrating targets difficult.

Max acknowledged theoretical surrender risk from higher yen yields but confirmed no actual increase in lapsation observed yet. Company closely monitoring and preparing.

Max confirmed USP approval expected by March 31, 2026. Internal model full approval will take considerably longer, similar to Solvency II rollout timeline.

Max explained higher yen yields benefit Tsumitasu as a long-duration product priced off long end of curve, creating advantage over bank/asset manager products priced off short end.

Virgil confirmed recruiting around 10,000 mark back-to-back years with focus on conversion and compensation plans tied to recruitment.

Max acknowledged favorable trends post-pandemic but cautioned that higher claims on accident, hospital, and cancer products may reduce future remeasurement gains.

Nicolas said no material change in aggregate treaty appetite. Always wrote some aggregates but very small portion of book. Haven't seen a huge comeback of aggregate dropdown features from softer market era. Team hasn't supported the few that came to market.

Nicolas explained retention increases are most pronounced in property and energy where good results make cedents comfortable keeping more risk. Structured deals unwinding as capital relief needs diminish.

Francois said too early for recession indicators but the portfolio is in a vastly different position vs 2008 with high credit quality, strong home equity, and excellent borrower fundamentals. A very severe scenario would be needed to create significant hardship.

Francois said about half the delinquency increase was from cat-affected areas with historically high cure rates; minimal expected financial impact. CA wildfires expected to have minimal MI impact.

Nicolas identified public D&O and excess cyber as the two areas with double-digit rate decreases and persistent excess capacity.

Francois confirmed favorable development was almost entirely from property (cat and non-cat), flat on casualty. Driven by prior-year events developing favorably and IBNR in excess of needs.