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MetLife (MET) Q1 Earnings & Revenues Top Estimates, Grow Y/Y
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MetLife, Inc.’s (MET - Free Report) first-quarter 2017 earnings of $1.46 per share beat the Zacks Consensus Estimate by 14.96% and were up 12.3% year over year.
Earnings benefited from volume growth, continued expense discipline and higher fees from improved equity markets.
The company generated operating revenues of $16.9 billion, up 2% year over year and ahead of the Zacks Consensus Estimate of $16.78 billion. MetLife’s operating premiums, fees and other revenues remained unchanged year over year both on a reported basis as well as on constant currency basis at $11.9 billion.
Net investment income increased 14% year over year to $5.2 billion. In the reported quarter, the company’s total operating expenses decreased 0.4% year over year to $15.45 billion.
Segment Details
U.S.
Operating earnings in this segment increased 24% year over year to $503 million, led by higher variable investment income, lower expenses and volume growth. Operating premiums, fees & other revenues increased 3% to $5.7 billion.
Asia
Operating earnings were down 3% (or 5% on a constant currency basis) year over year to $295 million due to a tax-related item in Japan, partly offset by volume growth and lower expenses. Operating premiums, fees & other revenues in Asia increased 3% (1% on a constant currency basis) to $2.1 billion.
Latin America
Operating earnings were $143 million, down 5% (unchanged on a constant currency basis) year over year. Earnings suffered from higher claim volumes in the quarter and the impact of an assumption change in the company’s Chile pension business. Operating premiums, fees & other revenues were $916 million, up 5% (6% on a constant currency basis).
EMEA
Operating earnings from EMEA increased 19% (or 34% on constant currency basis) year over year to $75 million, primarily led by favorable expense margins and higher business volume. Operating premiums, fees & other revenues were $614 million, almost unchanged from the prior-year period and up 5% on a constant currency basis, driven by driven by growth in Turkey, as well as in employee benefits in the United Kingdom and Egypt.
MetLife Holdings
Operating earnings from MetLife Holdings came in at $385 million, up 44% year over year. Operating premiums, fees & other revenues were $1.5 billion, down 8% primarily due to the sale of MetLife Premier Client Group.
Brighthouse Financial
Brighthouse Financial reported operating earnings of $244 million, down 25% year over year, due to separation activities with MetLife Holdings. Operating premiums, fees & other revenues decreased 15.4% year over year to $1.1 billion, due to lower annuity and life insurance sales.
Investment & Financial Update
In the reported quarter, net investment income increased 6% year over year to $5 billion. Variable investment income increased over twofold to $343 million from $165 million in the year-ago quarter driven by the strong performance of private equity and hedge fund investments.
Among other players in the same space, the bottom line at American International Group Inc. (AIG - Free Report) , Prudential Financial Inc. (PRU - Free Report) and Aflac Inc. (AFL - Free Report) beat first-quarter estimates by 22.5%, 5.68% and 3.09% respectively.
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MetLife (MET) Q1 Earnings & Revenues Top Estimates, Grow Y/Y
MetLife, Inc.’s (MET - Free Report) first-quarter 2017 earnings of $1.46 per share beat the Zacks Consensus Estimate by 14.96% and were up 12.3% year over year.
Earnings benefited from volume growth, continued expense discipline and higher fees from improved equity markets.
The company generated operating revenues of $16.9 billion, up 2% year over year and ahead of the Zacks Consensus Estimate of $16.78 billion. MetLife’s operating premiums, fees and other revenues remained unchanged year over year both on a reported basis as well as on constant currency basis at $11.9 billion.
Net investment income increased 14% year over year to $5.2 billion.
In the reported quarter, the company’s total operating expenses decreased 0.4% year over year to $15.45 billion.
Segment Details
U.S.
Operating earnings in this segment increased 24% year over year to $503 million, led by higher variable investment income, lower expenses and volume growth. Operating premiums, fees & other revenues increased 3% to $5.7 billion.
Asia
Operating earnings were down 3% (or 5% on a constant currency basis) year over year to $295 million due to a tax-related item in Japan, partly offset by volume growth and lower expenses. Operating premiums, fees & other revenues in Asia increased 3% (1% on a constant currency basis) to $2.1 billion.
Latin America
Operating earnings were $143 million, down 5% (unchanged on a constant currency basis) year over year. Earnings suffered from higher claim volumes in the quarter and the impact of an assumption change in the company’s Chile pension business. Operating premiums, fees & other revenues were $916 million, up 5% (6% on a constant currency basis).
EMEA
Operating earnings from EMEA increased 19% (or 34% on constant currency basis) year over year to $75 million, primarily led by favorable expense margins and higher business volume. Operating premiums, fees & other revenues were $614 million, almost unchanged from the prior-year period and up 5% on a constant currency basis, driven by driven by growth in Turkey, as well as in employee benefits in the United Kingdom and Egypt.
MetLife Holdings
Operating earnings from MetLife Holdings came in at $385 million, up 44% year over year. Operating premiums, fees & other revenues were $1.5 billion, down 8% primarily due to the sale of MetLife Premier Client Group.
Brighthouse Financial
Brighthouse Financial reported operating earnings of $244 million, down 25% year over year, due to separation activities with MetLife Holdings. Operating premiums, fees & other revenues decreased 15.4% year over year to $1.1 billion, due to lower annuity and life insurance sales.
Investment & Financial Update
In the reported quarter, net investment income increased 6% year over year to $5 billion. Variable investment income increased over twofold to $343 million from $165 million in the year-ago quarter driven by the strong performance of private equity and hedge fund investments.
MetLife, Inc. Price, Consensus and EPS Surprise
MetLife, Inc. Price, Consensus and EPS Surprise | MetLife, Inc. Quote
Zacks Rank & Peer Releases
MetLife carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players in the same space, the bottom line at American International Group Inc. (AIG - Free Report) , Prudential Financial Inc. (PRU - Free Report) and Aflac Inc. (AFL - Free Report) beat first-quarter estimates by 22.5%, 5.68% and 3.09% respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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