MetLife (MET) Q3 Earnings Miss, Revenues Beat Estimates

CB MET WRB PGR

MetLife, Inc.’s (MET - Free Report) third-quarter 2019 operating earnings of $1.27 per share missed the Zacks Consensus Estimate by 9.93%. The bottom line declined 8% year over year. Earnings suffered from increase in expenses, which offset revenue growth.

Cigna Corporation Price, Consensus and EPS Surprise

Behind the Headlines

The company generated operating revenues of $16.9 billion, up 3% year over year, and surpassed the Zacks Consensus Estimate by 3.4%.

Adjusted premiums, fees & other revenues, excluding pension risk transfer, grew 2% year over year to $11.2 billion. Net investment income of $4.6 billion increased 3% year over year.

Total expenses of $15.9 million were up 4.6% year over year due to higher policyholder benefits and claims, and other expenses.

Book value per share was $48.56, up 13% year over year.

Tangible return on equity was 16.4%, down 220 basis points year over year.

Quarterly Segment Details

United States

Adjusted earnings in this segment declined 11% year over year to $707 million due to unfavorable underwriting. Adjusted premiums, fees & other revenues were $6.1 billion, up 4% year over year.

Asia

Operating earnings of $349 million increased 33% year over year, driven by volume growth and favorable variable investment income. Adjusted premiums, fees & other revenues were $2.1 billion, down 3% on a constant-currency basis.

Latin America

Operating earnings were $155 million, down 4% year over year. Adjusted premiums, fees & other revenues were $967 million, up 8%, primarily driven by growth across the region.

Europe, the Middle East, and Africa (EMEA)

Operating earnings from EMEA decreased 2% year over year to $53 million, due to less favorable underwriting and higher taxes.

Adjusted premiums, fees & other revenues were $656 million, up 6% year over year on a constant-currency basis.

MetLife Holdings

Adjusted operating earnings from MetLife Holdings came in at $149 million, down 54% year over year.

Operating premiums, fees & other revenues were $1.3 billion, down 3% 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 recently reported earnings this season are W.R. Berkley Corp. (WRB - Free Report) , The Progressive Corp. (PGR - Free Report) and Chubb Ltd. (CB - Free Report) , each beating their estimate by 26.5%, 6.8% and 2.3%, respectively.

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