“As of now, we anticipate PE returns to remain consistent with the second and third quarter with a modest improvement in real estate funds in the fourth quarter.”

In context

“g growth across the region. MetLife Holdings adjusted earnings were $206 million, up 23%, primarily driven by higher variable investment income. Corporate and other adjusted loss was $262 million compared to an adjusted loss of $258 million in the prior year quarter. Higher expenses, including interest on incremental debt, were partially offset by higher net investment income. The company's effective tax rate on adjusted earnings in the quarter was approximately 23% and within our 2023 guidance of 22% to 24%. On page 6, this chart reflects our pre-tax variable investment income for the prior five quarters including $179 million in Q3 of 2023. The private equity portfolio of $14.9 billion had a plus 1.4% return in the quarter. Real estate equity funds of $2.2 billion had a minus 3% return. As of now, we anticipate PE returns to remain consistent with the second and third quarter with a modest improvement in real estate funds in the fourth quarter. Therefore, VII would more closely resemble second quarter results. On page 7 we provide VII post-tax by segment for the prior five quarters. As we have noted previously each of the businesses hold its own discrete investment portfolios, which have been built to match its liabilities. As reflected in the chart, Asia, RIS and MetLife Holdings continue to hold the largest proportion of VII assets given their long-dated liability profile while Corporate and Other continues to hold higher VII assets than historical levels. Now turning to page 8. The chart on the left of the page shows the split of our net investment income between recurring and VII for the past three years and Q3 of 2022 versus Q3 of 2023. While VII has had lower than trend returns over the last few quarters, recurring income,”