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MetLife (MET) Q4 Earnings & Revenues Top Estimates, Rise Y/Y

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MetLife, Inc.’s (MET - Free Report) fourth-quarter 2019 operating earnings of $1.98 per share beat the Zacks Consensus Estimate by 41.4% and surged 46.7% year over year. Earnings gained from a rise in revenues.

Behind the Headlines

The company generated operating revenues of $18.2 billion, up 18% year over year, and surpassed the Zacks Consensus Estimate by 8.9%.

Adjusted premiums, fees & other revenues, excluding pension risk transfer, grew 24% year over year to $13.8 billion. Net investment income (adjusted) of $4.5 billion increased 3% year over year.

Total adjusted  expenses of $16.5 million were up 19.6% year over year.
Book value per share was $48.97, up 9.7% year over year.

Tangible return on equity was 6.1%, down 1830 basis points year over year.

MetLife, Inc. Price, Consensus and EPS Surprise

Quarterly Segment Details

United States

Adjusted earnings in this segment declined 1% year over year to $675 million due to unfavorable underwriting. Adjusted premiums, fees & other revenues were $8.6 billion, up 50% year over year.

Asia

Operating earnings of $341 million increased 21% year over year, driven by volume growth and higher investment margins. Adjusted premiums, fees & other revenues were $2.1 billion, down 2% on a constant-currency basis.

Latin America

Operating earnings were $161 million, up 18% year over year, driven by capital markets and volume growth. Adjusted premiums, fees & other revenues were $888 million, down 7% due to lower annuity sales in Chile.
Europe, the Middle East, and Africa (EMEA)

Operating earnings from EMEA increased 20% year over year to $66 million, primarily driven by favorable taxes and volume growth, partially offset by unfavorable underwriting.

Adjusted premiums, fees & other revenues were $670 million, up 5% year over year on a constant-currency basis.

MetLife Holdings

Adjusted operating earnings from MetLife Holdings came in at $269 million, up 21% year over year.

Operating premiums, fees & other revenues were $1.3 billion, down 5% year over year.

Financial Update

As of Dec 31, 2019, shareholders’ equity was $62.8 billion, up 27.1% year over year.

Long-term debt as of Dec 31, 2019 was $13.5 billion, up 5.5% year over year.

Zacks Rank & Other Releases

MetLife currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other insurers that have reported earnings this season are Unum Group (UNM - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 2.17%, 58.8% and 8.6%, respectively.

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