We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MetLife (MET) Q2 Earnings and Revenues Miss; Decline Y/Y
Read MoreHide Full Article
MetLife, Inc.’s (MET - Free Report) second-quarter 2016 earnings of 83 cents per share missed the Zacks Consensus Estimate of $1.36 by 39%. Earnings also plunged 47% year over year.
During the second quarter, MetLife generated revenues of $16.95 billion. The top line lagged the Zacks Consensus Estimate of $17.07 billion by 0.4% and also declined 2.4% year over year.
MetLife’s premiums, fees and other revenues slipped 1% year over year. Operating premiums, fees & other revenues also dipped 1%.
During the reported quarter, MetLife’s total operating expenses increased 4.5% year over year to $15.7 billion.
Segment Details
Americas
Operating earnings in this segment declined 42% (or 41% on constant currency basis) year over year to $835 million due to reserve adjustments resulting from modeling improvements in the reserving process and the annual variable annuity actuarial assumption review.
In the reported quarter, operating return on allocated equity was 8.6%, operating return on allocated tangible equity was 9.6% and operating premiums, fees & other revenues grew 1% (or 3% on a constant currency basis) to $9.3 billion.
Asia
Operating earnings were down 39% (or 41% on constant currency basis) year over year to $259 million. This was primarily due to unfavorable tax-related adjustments in Japan, reinsurance receivables adjustment in Australia and lower fixed annuity surrenders.
In the reported quarter, operating return on allocated equity was 9.4%, while operating return on allocated tangible equity was 16.2%. Operating premiums, fees & other revenues in Asia declined 8% (or 13% on a constant currency basis) to $2.1 billion.
Total sales for the region decreased 3% on a constant currency basis due to the impact of management actions to enhance value in targeted markets.
EMEA
Operating earnings from EMEA increased 28% (or 36% on constant currency basis) year over year to $64 million.
In the reported quarter, operating return on allocated equity was 7.9%, while operating return on allocated tangible equity was 13.8%. Operating premiums, fees & other revenues were down 4% (or 1% on a constant currency basis) to $633 million.
Moreover, total sales jumped 10% on a constant currency basis. Growth in employee benefits in the Middle East as well as accident and health products across the region drove the upside.
Also, Corporate & Other operating loss was $234 million, substantially wider than the loss of $153 million in the year-ago quarter.
Investment & Financial Update
In the reported quarter, net investment income slipped 6% year over year to $4.9 billion. Variable investment income was $285 million, down 33.2% from $427 million in the prior-year quarter, mainly due to lower alternative investment income.
Zacks Rank
Currently, MetLife carries a Zacks Rank #4 (Sell).
Among other multi line insurers that have reported their second-quarter results so far, the bottom line at CNO Financial Group Inc. (CNO - Free Report) and American International Group Inc. (AIG - Free Report) beat the respective Zack Consensus Estimate, while Cigna Corp.’s (CI - Free Report) earnings missed the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MetLife (MET) Q2 Earnings and Revenues Miss; Decline Y/Y
MetLife, Inc.’s (MET - Free Report) second-quarter 2016 earnings of 83 cents per share missed the Zacks Consensus Estimate of $1.36 by 39%. Earnings also plunged 47% year over year.
During the second quarter, MetLife generated revenues of $16.95 billion. The top line lagged the Zacks Consensus Estimate of $17.07 billion by 0.4% and also declined 2.4% year over year.
MetLife’s premiums, fees and other revenues slipped 1% year over year. Operating premiums, fees & other revenues also dipped 1%.
During the reported quarter, MetLife’s total operating expenses increased 4.5% year over year to $15.7 billion.
Segment Details
Americas
Operating earnings in this segment declined 42% (or 41% on constant currency basis) year over year to $835 million due to reserve adjustments resulting from modeling improvements in the reserving process and the annual variable annuity actuarial assumption review.
In the reported quarter, operating return on allocated equity was 8.6%, operating return on allocated tangible equity was 9.6% and operating premiums, fees & other revenues grew 1% (or 3% on a constant currency basis) to $9.3 billion.
Asia
Operating earnings were down 39% (or 41% on constant currency basis) year over year to $259 million. This was primarily due to unfavorable tax-related adjustments in Japan, reinsurance receivables adjustment in Australia and lower fixed annuity surrenders.
In the reported quarter, operating return on allocated equity was 9.4%, while operating return on allocated tangible equity was 16.2%. Operating premiums, fees & other revenues in Asia declined 8% (or 13% on a constant currency basis) to $2.1 billion.
Total sales for the region decreased 3% on a constant currency basis due to the impact of management actions to enhance value in targeted markets.
EMEA
Operating earnings from EMEA increased 28% (or 36% on constant currency basis) year over year to $64 million.
In the reported quarter, operating return on allocated equity was 7.9%, while operating return on allocated tangible equity was 13.8%. Operating premiums, fees & other revenues were down 4% (or 1% on a constant currency basis) to $633 million.
Moreover, total sales jumped 10% on a constant currency basis. Growth in employee benefits in the Middle East as well as accident and health products across the region drove the upside.
Also, Corporate & Other operating loss was $234 million, substantially wider than the loss of $153 million in the year-ago quarter.
Investment & Financial Update
In the reported quarter, net investment income slipped 6% year over year to $4.9 billion. Variable investment income was $285 million, down 33.2% from $427 million in the prior-year quarter, mainly due to lower alternative investment income.
Zacks Rank
Currently, MetLife carries a Zacks Rank #4 (Sell).
METLIFE INC Price, Consensus and EPS Surprise
METLIFE INC Price, Consensus and EPS Surprise | METLIFE INC Quote
Performance of Other Multi Line Insurers
Among other multi line insurers that have reported their second-quarter results so far, the bottom line at CNO Financial Group Inc. (CNO - Free Report) and American International Group Inc. (AIG - Free Report) beat the respective Zack Consensus Estimate, while Cigna Corp.’s (CI - Free Report) earnings missed the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>