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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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.
"More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>"
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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