) reported third-quarter 2013 operating earnings per share (EPS)
of $1.34, which missed the Zacks Consensus Estimate of $1.36.
However, results were slightly ahead of the year-ago quarter's
EPS of $1.32. Operating earnings climbed 6% year over year to
However, including extraordinary items, GAAP net income soared
to $942 million or 84 cents per share against net loss of $984
million or 92 cents per share in the prior-year quarter.
Results reflected growth across the Americas and EMEA along
with expense control. These were partially offset by weakness in
Asia and higher derivative losses driven by the unfavorable
impact of foreign exchange rates and low interest rate. The
downsides also weighed on the return on equity (ROE) and book
value per share.
During the reported quarter, MetLife's total operating
expenses inched up 1.6% year over year to $14.82 billion, while
total expenses decreased 12.3% year over year to $15.36
Total operating revenue for the reported quarter climbed 2%
year over year to $16.9 billion, also breezing past the Zacks
Consensus Estimate of $16.81 billion. However, total revenue
dipped 1.0% year over year to $16.34 billion, primarily due to
higher investment and derivative losses. MetLife's premiums
inched up 0.2% year over year to $9.09 billion and fee revenue
improved 11.1% to $2.28 billion, while net investment income
stood flat at $5.04 billion. Other revenues also grew 11.7% year
over year to $486 million.
operating earnings rose 7.2% year over year to $1.32 billion.
Premiums, fees and other revenues climbed 4% to $8.7 billion.
Operating revenues grew 3.4% to $12.86 billion.
The segment witnessed core improvements in Latin America,
Corporate Benefit Funding and Retail businesses, although
variable annuity sales declined 41% over the prior-year quarter
to $2.7 billion. Meanwhile, operating earnings in Group,
Voluntary & Worksite Benefits fell 20% year over year due to
lower underwriting results.
Operating earnings from
inched down 0.7% year over year to $257 billion, while premiums,
fees and other revenues grew 12% on a constant currency basis to
$2.4 billion, although it dipped 5% on reported basis. Operating
revenues dipped 4.2% to $3.08 billion.
Operating earnings from
jumped 37.1% year over year to $85 million. Premiums, fees and
other revenues in this segment increased 8% to $707 million.
Operating revenues climbed 7.2% to $831 million. Moreover, total
sales improved 10%, reflecting augmented growth.
Corporate & Other
operating loss was recorded at $160 million, wider than the loss
of $134 million in the prior-year quarter. Total revenue stood at
$127 million, down 28.7% from prior-year quarter due to low
Investment & Financial Update
At the end of the reported quarter, MetLife's net investment
income remained flat year over year at $5.0 billion, while net
investment portfolio loss was $10 million, against gain of $41
million in the year-ago quarter. In addition, pre-tax derivative
losses inflated to $546 million against $718 million in the
year-ago quarter. Volatility in interest rate and foreign
exchange led to the losses.
Meanwhile, under the company's variable annuity hedging
program, pre-tax variable investment income was $236 million in
the reported quarter against $260 million in the year-ago
As of Sep 30, 2013, MetLife's book value per share, excluding
AOCI, inched up 0.6% year over year at $47.99. However, reported
book value (including AOCI) per share decreased 10% to $52.54.
Operating ROE stood at 10.3%, down from 11.3% at 2012-end.
At the end of Sep 2013, MetLife had total investments of
$494.9 billion, down from $517.1 billion at 2012-end. Total
assets decreased to $822.64 billion and long-term debt decreased
to $18.25 billion, whereas cash and cash equivalents decreased to
$11.38 billion and total equity decreased to $61.27 billion, from
On Oct 22, 2013, the board announced a quarterly dividend of
27.5 cents per share, payable on Dec 13, 2013, to the
shareholders of record as on Nov 8, 2013.
On Sep 13, 2013, MetLife paid a quarterly dividend of 27.5
cents per share to the shareholders of record as on Aug 9,
While MetLife carries a Zacks Rank #3 (Hold), its peers
FBL Financial Group Inc.
) each carry a Zacks Rank #2 (Buy).
ASSURANT INC (AIZ): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
FBL FINL GRP-A (FFG): Free Stock Analysis
METLIFE INC (MET): Free Stock Analysis Report
To read this article on Zacks.com click here.