interest_rates
Demand Driver
Market interest rates are a key driver of results, affecting AUM fees, gross margin, reserves and reinvestment yields
Relevance 95·Dependency 80·Confidence 95
Source evidence
“Market interest rates are a key driver of our results. Increases and decreases in such rates, as well as extended periods of stagnation, may impact our business and investments in various ways.”
NAIC Risk-Based Capital framework
Regulatory Exposure
U.S. insurance subsidiaries are subject to RBC requirements used as early warning tool; NAIC revisions to RBC factors affect capital position.
Relevance 85·Dependency 80·Confidence 95
Source evidence
“Most of our U.S. insurance subsidiaries are subject to risk-based capital (“RBC”) requirements.”
NYDFS (lead state regulator)
Regulatory Exposure
NYDFS is lead state regulator, chairs Supervisory College, issues SCLs affecting asset adequacy testing and statutory capital.
Relevance 85·Dependency 75·Confidence 95
Source evidence
“An SCL could mandate assumption changes that would require us to increase, or influence our decision to release, certain asset adequacy reserves, which could materially impact our statutory capital and surplus.”
Interest rates
Demand Driver
Interest rate conditions are listed as a factor that could cause results to differ materially from forward-looking statements.
Relevance 85·Dependency 70·Confidence 90
Source evidence
“(1) economic condition difficulties, including risks relating to interest rates, the effects of announced or future tariff increases on the global economy, credit spreads, declining equity or debt markets”
U.S. dollar
Currency Exposure
FX fluctuations vs USD affect non-USD investments, non-U.S. subsidiaries' net income and non-USD instrument issuance
Relevance 85·Dependency 70·Confidence 90
Source evidence
“Fluctuations in foreign currency exchange rates against the U.S. dollar may adversely affect our non-U.S. dollar denominated investments, investments in non-U.S. subsidiaries, net income from non-U.S. operations and issuance of non-U.S. dollar denominated instruments.”
Insurance regulatory and supervisory regimes
Regulatory Exposure
Changes in legal, regulatory, supervisory and enforcement policy are enumerated risk factors for the insurance business.
Relevance 80·Dependency 70·Confidence 92
Source evidence
“(7) legal, regulatory, and supervisory and enforcement policy changes;”
market_volatility
Revenue Exposure
Equity market downturns and volatility reduce fee-based savings/asset management revenues and increase guaranteed benefit exposure
Relevance 80·Dependency 65·Confidence 88
Source evidence
“Downturns, volatility or other negative equity market conditions may harm our savings, asset management, and investment products' and services' revenues and investment returns, where fee income is earned based upon the fair value of our managed assets.”
Equity and debt market declines
Revenue Exposure
Declining equity or debt markets, credit spreads, and investment defaults/downgrades/volatility are disclosed risks to results.
Relevance 75·Dependency 65·Confidence 90
Source evidence
“(13) investment defaults, downgrades, or volatility;”
monetary_policy
Demand Driver
Fed actions in 2025 (rate cuts, ending quantitative tightening) affect economic conditions relevant to the business
Relevance 75·Dependency 60·Confidence 88
Source evidence
“the Federal Open Market Committee took various actions in 2025 to promote employment and combat inflation, including lowering interest rates in the second half of the year and ending the process of quantitative tightening.”
Inflation raises group premiums with rising interest rates but increases labor and other expenses pressuring margins
Relevance 75·Dependency 55·Confidence 90
Source evidence
“Inflation also increases expenses for labor and other costs, potentially putting pressure on profitability if such costs cannot be passed through in our product prices.”
United States
Geopolitical Exposure
U.S. federal debt limit disputes and potential government shutdown/default could raise market volatility and reduce economic activity
Relevance 70·Dependency 60·Confidence 85
Source evidence
“In the U.S., a threat facing the economy is the continued disagreement over the federal debt limit, other budget questions, and potential restrictions on trade with other markets.”
IRS Sections 355/361 (Brighthouse spin-off)
Tax Exposure
IRS could recharacterize the 2017 Brighthouse spin-off as taxable, creating significant federal tax liabilities for MetLife, Brighthouse and stockholders.
Relevance 70·Dependency 55·Confidence 90
Source evidence
“the IRS could determine that the distribution should be treated as a taxable transaction”
credit_conditions
Cost Driver
Widening credit spreads increase borrowing costs and decrease certain fee income; spread changes drive liability volatility
Relevance 70·Dependency 55·Confidence 87
Source evidence
“An increase in credit spreads relative to U.S. Treasury benchmarks may increase our borrowing costs and decrease certain product fee income.”
SEC/FINRA securities regulation
Regulatory Exposure
Variable products and broker-dealer distribution businesses are subject to federal securities laws, Investment Company Act, and FINRA oversight.
Relevance 65·Dependency 55·Confidence 90
Source evidence
“Some of our subsidiaries and their activities in offering and selling Variable Products are subject to extensive regulation under the federal securities laws and regulations administered by the SEC.”
unemployment
Demand Driver
Higher unemployment, claims incidence and adverse benefit utilization negatively affect earnings and capitalization
Relevance 65·Dependency 50·Confidence 85
Source evidence
“Higher unemployment, changes to inflation, lower family income, lower corporate earnings, greater government regulation, lower business investment, lower consumer spending, elevated incidence of claims, adverse utilization of benefits relative to our best estimate expectations”
Sanctions
Geopolitical Exposure
U.S., EU and U.K. sanctions, including expansion on Russia due to the Ukraine war, can disrupt cross-border activity.
Relevance 60·Dependency 50·Confidence 88
Source evidence
“the U.S., EU and the UK have increased the creation and use of sanctions in response to certain geo-political activity, including the expansion of sanctions on Russia as a result of the war in Ukraine”
Tax law changes
Tax Exposure
Changes in tax rates, tax laws or interpretations are disclosed risk factors; deferred income tax asset allowance also flagged.
Relevance 60·Dependency 50·Confidence 90
Source evidence
“(8) changes in tax rates, tax laws or interpretations;”
Tariffs
Geopolitical Exposure
U.S. global, reciprocal and sectoral tariffs may impact economic growth, inflation, supply chains and financial market volatility relevant to insurers' capital positions.
Relevance 60·Dependency 45·Confidence 88
Source evidence
“The U.S. implementation of global, reciprocal and sectoral tariffs and the associated retaliatory impacts may impact U.S. and global economic growth, increase inflation”
Tariff increases
Geopolitical Exposure
Effects of announced or future tariff increases on the global economy are cited among factors driving results uncertainty.
Relevance 55·Dependency 45·Confidence 85
Source evidence
“the effects of announced or future tariff increases on the global economy”
OECD Pillar Two 15% global minimum tax
Tax Exposure
Pillar Two applies to MetLife as a multinational, but most operations are in jurisdictions with tax rates above 15% so no material impact expected.
Relevance 50·Dependency 35·Confidence 92
Source evidence
“As most of our operations are in jurisdictions with a tax rate above 15%, we do not currently expect these rules to have a material impact on us.”
