MetLife, Inc.’s (MET - Free Report) second-quarter 2019 operating earnings of $1.38 per share beat the Zacks Consensus Estimate by 5.34%. The bottom line rose 6.2% year over year. Earnings benefited from lower expenses, partly offset by decline in revenues.
Behind the Headlines
The company generated operating revenues of $16.5 billion, down 22% year over year, and missed the Zacks Consensus Estimate by 0.25%.
Adjusted premiums, fees & other revenues, excluding pension risk transfer, grew 4% year over year to $11.3 billion. Net investment income of $4.55 billion increased 5.2% year over year.
Total expenses of $14.7 million were down 25% year over year due to lower policyholder benefits and claims, and interest expenses.
Book value per share was $37.09, up 11.6% year over year.
MetLife, Inc. Price, Consensus and EPS Surprise
Quarterly Segment Details
Adjusted earnings in this segment increased 9% year over year to $732 million, driven by volume growth, lower expenses and favorable underwriting. Adjusted premiums, fees & other revenues were $6.2 billion, up 6% year over year.
Operating earnings of $359 million were down 1% (up 2% on constant-currency basis) year over year, driven by volume growth, partly offset by less favorable underwriting. Adjusted premiums, fees & other revenues were $2.1 billion, flat year over year (up 2% on constant-currency basis).
Operating earnings were $159 million, up 10% (and 18% at constant currency) year over year, driven by capital markets and volume growth.
Adjusted premiums, fees & other revenues were $1.1 billion, up 9% (up 15% at constant currency), primarily driven by higher annuity sales in Chile.
Europe, the Middle East, and Africa (EMEA)
Operating earnings from EMEA decreased 10% (flat on constant-currency basis) year over year to $77 million, driven by investment margins, favorable underwriting, and volume growth that were offset by the impact of favorable expense margins in the prior-year period.
Adjusted premiums, fees & other revenues were $669 million, down 1% year over year but up 5% at constant currency.
Adjusted operating earnings from MetLife Holdings came in at $299 million, up 7% year over year.
Operating premiums, fees & other revenues were $1.3 billion, down 4% year over year.
Zacks Rank & Other Releases
MetLife has a Zacks Rank #4 (Sell). 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 28.13%, 16.08% and 0.8%, respectively.
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