MetLife Profit Surges, Tops Estimate

(RTTNews) - Life insurer MetLife Inc (MET) on Wednesday reported a surge in third-quarter profit, led mainly by derivative gains and lower catastrophe losses, as both earnings and revenue topped Wall Street estimates.

"MetLife had a strong third quarter," said Steven Kandarian, chief executive officer of MetLife. "We delivered both top and bottom line growth, investment margins remained strong, and expenses were well controlled."

MetLife, based in New York, posted quarterly net earnings of $2.1 billion or $1.81 per share, compared with $942 million or $0.84 per share last year.

Results for the quarter included derivative gains of $311 million.

Excluding items, operating earnings for the quarter were $1.60 per share, compared with $1.34 per share a year ago.

On average, 18 analysts polled by Thomson Reuters expected earnings of $1.38 per share for the quarter. Analysts' estimates typically exclude special items.

Operating earnings were helped by variable investment income above MetLife's plan range by $62 million, favorable catastrophe experience which increased operating earnings by $38 million relative to plan, and a favorable one-time tax adjustment in the U.S. which increased operating earnings by $32 million. This was partly offset by Chilean tax reform that hurt operating earnings by $41 million.

Total revenues for the third quarter climbed 7 percent to $17.92 billion from $16.81 billion last year. Nine analysts had a consensus revenue estimate of $17.72 billion for the quarter.

Premiums, fees & other revenues for the quarter rose 8 percent to $12.73 billion from $11.82 billion a year ago.

MetLife's operating earnings in the Americas region rose 14 percent from last year, and this was up 19 percent in Asia. Operating earnings in Europe, Middle East and Africa climbed 13 percent.

At the end of the quarter, MetLife's book value per share was $61.44, up 17 percent from last year.

MetLife is trying to avoid being designated as systemically important by federal regulators as this will mean enhanced government oversight. Last year, Prudential Financial Inc and AIG were designated as systemically important.

MET closed Wednesday at $52.31, up $0.17 or 0.33%, on a volume of 5.2 million shares on the NYSE. In after hours, the stock gained $0.89 or 1.70% at $53.20.