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MetLife (MET) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
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MetLife, Inc.’s (MET - Free Report) second-quarter 2018 operating earnings of $1.30 per share beat the Zacks Consensus Estimate of $1.17 by 11.1%. The bottom line improved 25% year over year on prudent underwriting and expense management.
The company generated operating revenues of $21.2 billion, up 20.7% year over year. The top line beat the Zacks Consensus Estimate by 34.4%.
Adjusted premiums, fees & other revenues of $16.9 billion improved 48% year over year. Net investment income of $4.5 billion increased 7%.
Total expenses of $20.1 million were up 40.3% year over year on higher policyholder benefits and claims, interest credited to policyholder account balances, interest expense on debt and other expenses.
Quarterly Segment Details
U.S.
Adjusted earnings in this segment surged 36% year over year to $671 million, attributable to the olid results at Group Benefits, Retirement and Income Solutions as well as Property & Casualty.
Adjusted premiums, fees & other revenues were $11.8 billion, up 86%. This uptrend is driven by a large pension risk transfer transaction in Retirement and Income Solutions.
Asia
Operating earnings of $363 million were up 17% year over year on a reported basis and up 16% on constant currency basis, fueled by volume growth, higher investment income and lower taxes.
Adjusted premiums, fees & other revenues were $2.1 billion, up 1% on reported basis but down 1% on a constant currency basis, given a continued shift from premium-based products to fee-based products.
Latin America
Operating earnings were $86 million, up 19% (down 3% at constant currency) year over year, attributable to higher taxes in the region.
Adjusted premiums, fees & other revenues were $972 million, up 5% on reported basis and 7% more on a constant currency basis, fueled by growth across the region.
EMEA
Operating earnings from EMEA increased 19% (up 15% on constant currency basis) year over year to $86 million.
Adjusted premiums, fees & other revenues were $673 million, up 8% reportedly and 5% on constant currency basis.
MetLife Holdings
Operating earnings from MetLife Holdings came in at $280 million, up 18% year over year owing to U.S. tax reform.
Operating premiums, fees & other revenues were $1.3 billion, down 6%, primarily due to Brighthouse separation-related impacts.
Corporate & Other
Corporate & other incurred an operating loss of $219 million, wider than $145 million loss in the prior-year quarter due to the negative impact of U.S. tax reform.
Financial Update
Variable investment income decreased to $176 million from $222 million in the year-ago quarter, attributable to lower private equity and hedge fund income.
Book value per share decreased 21% year over year to $50.28 as of Jun 30, 2018, largely due to the separation of Brighthouse Financial, Inc. and its subsidiaries.
Adjusted tangible return on equity expanded 400 basis points to 12.2%.
Among other firms from the insurance industry having reported second-quarter earnings so far, the bottom line of Radian Group Inc. (RDN - Free Report) , The Hartford Financial Services Group, Inc. (HIG - Free Report) and MGIC Investment Corporation (MTG - Free Report) surpassed the respective Zacks Consensus Estimate.
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MetLife (MET) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
MetLife, Inc.’s (MET - Free Report) second-quarter 2018 operating earnings of $1.30 per share beat the Zacks Consensus Estimate of $1.17 by 11.1%. The bottom line improved 25% year over year on prudent underwriting and expense management.
MetLife, Inc. Price, Consensus and EPS Surprise
MetLife, Inc. Price, Consensus and EPS Surprise | MetLife, Inc. Quote
Behind the Headlines
The company generated operating revenues of $21.2 billion, up 20.7% year over year. The top line beat the Zacks Consensus Estimate by 34.4%.
Adjusted premiums, fees & other revenues of $16.9 billion improved 48% year over year. Net investment income of $4.5 billion increased 7%.
Total expenses of $20.1 million were up 40.3% year over year on higher policyholder benefits and claims, interest credited to policyholder account balances, interest expense on debt and other expenses.
Quarterly Segment Details
U.S.
Adjusted earnings in this segment surged 36% year over year to $671 million, attributable to the olid results at Group Benefits, Retirement and Income Solutions as well as Property & Casualty.
Adjusted premiums, fees & other revenues were $11.8 billion, up 86%. This uptrend is driven by a large pension risk transfer transaction in Retirement and Income Solutions.
Asia
Operating earnings of $363 million were up 17% year over year on a reported basis and up 16% on constant currency basis, fueled by volume growth, higher investment income and lower taxes.
Adjusted premiums, fees & other revenues were $2.1 billion, up 1% on reported basis but down 1% on a constant currency basis, given a continued shift from premium-based products to fee-based products.
Latin America
Operating earnings were $86 million, up 19% (down 3% at constant currency) year over year, attributable to higher taxes in the region.
Adjusted premiums, fees & other revenues were $972 million, up 5% on reported basis and 7% more on a constant currency basis, fueled by growth across the region.
EMEA
Operating earnings from EMEA increased 19% (up 15% on constant currency basis) year over year to $86 million.
Adjusted premiums, fees & other revenues were $673 million, up 8% reportedly and 5% on constant currency basis.
MetLife Holdings
Operating earnings from MetLife Holdings came in at $280 million, up 18% year over year owing to U.S. tax reform.
Operating premiums, fees & other revenues were $1.3 billion, down 6%, primarily due to Brighthouse separation-related impacts.
Corporate & Other
Corporate & other incurred an operating loss of $219 million, wider than $145 million loss in the prior-year quarter due to the negative impact of U.S. tax reform.
Financial Update
Variable investment income decreased to $176 million from $222 million in the year-ago quarter, attributable to lower private equity and hedge fund income.
Book value per share decreased 21% year over year to $50.28 as of Jun 30, 2018, largely due to the separation of Brighthouse Financial, Inc. and its subsidiaries.
Adjusted tangible return on equity expanded 400 basis points to 12.2%.
Zacks Rank
MetLife holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other firms from the insurance industry having reported second-quarter earnings so far, the bottom line of Radian Group Inc. (RDN - Free Report) , The Hartford Financial Services Group, Inc. (HIG - Free Report) and MGIC Investment Corporation (MTG - Free Report) surpassed the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>