Risk Management

MetLife is in the business of mitigating risk and protecting families and their futures. We manage risk so that individuals and communities can realize their full potential. MetLife has a well-established risk management framework that constantly evolves and is designed to address material financial and non-financial risks (including compliance risks) to our business. The program is led by an independent Global Risk Management organization headed by our CRO, who reports directly to MetLife’s CEO.

MetLife operates under the Three Lines of Defense model. Each employee has a role to play in risk management under the Company’s risk and control framework. The lines of business and corporate functions are the first and primary line of defense in identifying, measuring, monitoring, managing and reporting risks. Global Risk Management forms the second line of defense, providing strategic advisory services and effective challenge and oversight to the business and corporate functions in the first line of defense. Internal Audit serves as the third line of defense, providing independent assurance and testing over the risk and control environment and related processes and controls.

The Board’s Finance and Risk Committee oversees the assessment and management of material risks, as well as capital and liquidity management practices. Other Board committees oversee distinct risk, consistent with the responsibilities laid out in their respective charters, such as:

• Audit: Adequacy of internal control over financial reporting, integrity of financial statements, policies and internal controls regarding information security and cybersecurity, and relevant legal and regulatory compliance;
• Governance and Corporate Responsibility: Culture and reputation, as well as policies and positions regarding significant sustainability matters;
• Investment: Investment portfolio risks; and
• Compensation: Compensation program risks (e.g., ensuring programs do not encourage excessive or inappropriate risk).

For more information on the Board’s committees and risk management oversight, see the Risk Oversight section of the Board’s Primary Role and Responsibilities section, and the Board Committees section of MetLife’s 2026 Proxy Statement.

In addition to oversight by the Board and its committees, MetLife has a management-level risk oversight structure. Material risks are within the purview of multiple senior management committees. MetLife’s Enterprise Risk Committee, a senior management-level committee, oversees the identification, measurement and management of material risks on an enterprise basis.

Managing Climate Risks

Climate risks, including both physical and transition risks, could impact MetLife’s business operations, investments, customers, and supply chains. Climate change may increase the frequency and severity of short-, medium-, or long-term weather-related disasters, public health incidents, wildfires, rising sea levels, and pandemics, and their effects may increase over time. Changes in policy, regulation, technology, or market behaviors in response to climate change may harm the value of investments we hold, harm our counterparties (including reinsurers), or increase our compliance costs. Our regulators may also increasingly focus their examinations on our management of climate-related risks.

We consider how MetLife could be impacted by climate risks across the business, both assets and liabilities, by evaluating how risks could manifest across risk types, including credit, market, insurance, operational, legal, and compliance risks. We have conducted qualitative climate risk identification exercises to determine potential climate risks for key parts of the organization. In addition, we have reviewed our organizational structure to identify roles and responsibilities in relation to climate risk management across the Three Lines of Defense.

MetLife continues to explore quantitative assessment and scenario analysis methods to advance our understanding of climate risks and the potential impacts on our business, strategy, and financial planning. While climate risk modeling is still a nascent field with many limitations, we continue to experiment with various approaches. We also monitor global climate-risk-related policy and regulatory developments through engagement with policy makers and industry groups. See our TCFD report for additional details on our management of climate risks and opportunities.