Summary
MetLife Inc. reported its 2008 annual results, a year significantly impacted by the global financial crisis. The company experienced a notable decrease in net income available to common shareholders, primarily due to increased losses from discontinued operations related to the split-off of Reinsurance Group of America (RGA). However, the company's core insurance segments demonstrated resilience, with premiums, fees, and other revenues increasing across Institutional and International segments, driven by business growth. Despite a decrease in net investment income, MetLife's robust derivative hedging strategies helped offset some of the losses on embedded derivatives associated with variable annuities, resulting in net investment gains for the year. Management anticipates continued financial market volatility in 2009, projecting mixed results across segments. Key challenges include lower fee income from separate account businesses and potential declines in retirement and savings product demand. MetLife is focusing on disciplined underwriting, pricing, hedging, and expense management to navigate the economic environment. The company also raised capital through common stock offerings in 2008 to strengthen its position.
Financial Highlights
42 data points| Revenue | $50.98B |
| Operating Expenses | $11.95B |
| Operating Income | $3.38B |
| Interest Expense | $1.05B |
| Net Income | $3.21B |
| EPS (Basic) | $4.19 |
| EPS (Diluted) | $4.14 |
| Shares Outstanding (Basic) | 735.18M |
| Shares Outstanding (Diluted) | 744.79M |
Key Highlights
- 1Net income available to common shareholders decreased by 26% to $3,084 million in 2008 compared to $4,180 million in 2007.
- 2The decrease in net income was largely driven by increased losses from discontinued operations, primarily related to the split-off of RGA.
- 3Premiums, fees, and other revenues increased by 11% to $32,881 million in 2008, with notable growth in the Institutional and International segments.
- 4Net investment income decreased by 10% to $16,296 million, primarily due to lower returns on various investment asset classes.
- 5Net investment gains (losses) improved significantly, shifting from a loss of $578 million in 2007 to a gain of $1,812 million in 2008, largely due to gains on freestanding derivatives that offset losses on embedded derivatives.
- 6The company raised $2.3 billion in October 2008 through a common stock offering to strengthen its capital position.
- 7MetLife is focused on disciplined underwriting, pricing, hedging strategies, and expense management to navigate the challenging economic environment in 2009.