Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Metlife Inc (MET) Beats Analyst Expectations

Page 1 of 2

Metlife Inc (NYSE:MET), with a history of over 140-years has grown to become a leading global insurance provider to over 90 million customers in over 50 countries. Besides holding leading market positions in the US, it has large presence in Japan, Latin America, Asia Pacific, Europe and Middle East. For the purpose of reporting, the company is divided into six segments; Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home, and Japan and Other International Regions.

MetlifeRecent Quarter’s Performance

The company reported better than expected 2012 fourth quarter performance on Feb. 13. Both the revenues and the net income advanced their respective estimates. While the top line of $13.36 billion was $1.1 billion ahead of its estimate, the bottom line of $1.25 per share beat its estimate by $0.07.

Most recent quarter’s earnings were up 10% over the fourth quarter of 2011 primarily on 21% higher operating earnings in the Americas and a 26% increase in the Europe, Middle East and Africa segment. Operating earnings in the Asian region were down 24% due to the annual review of actuarial assumptions.

The operating revenues of $18.36 billion during the most recent quarter were up 12% from a year ago. Much of the improvement in the latest operating revenues was a result of a surge in premiums and net investment income during the quarter. The company earned $10.59 billion in premiums during the fourth quarter of 2012, up 16%, while net investment income of $5.18 billion was up 6% from a year ago.

Operating expenses of $16.4 billion during the most recent quarter were up 12% year over year on 20% higher policyholder benefits and claims and policyholder dividends. As a result, the company posted operating earnings of $1.4 billion, up 10.5% from a year ago.

Segmental Review

Retail Life & Other reported operating earnings of $171 million. Mortality was weaker than expected, coming in at 99% of expected, vs. 91.3% last quarter and 81.1% in 4Q11, but was offset by better spread income and lower operating expenses.  Total Life Premiums, fees and other revenues of $1.5 billion were up from $1.4 billion in both 2Q and 3Q. Spreads continued to show strength at 2.45% in the quarter vs. 2.15% last quarter and 1.93% in 2Q12.

Retail Property and Casualty premiums of $433 million were up 2.5% year over year. The combined ratio improved to 84.5% in the quarter but does contain some favorable prior year development, while the all-in combined ratio of 100.4% reflects catastrophe losses from Sandy totaling around $67 million in the segment.

The Annuities segment reported operating income of $462 million, while Latin America, Asia, EMEA and Corporate and Other reported $148 million, $198 million, $59 million and $137 million, respectively.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!