Summary
MetLife Inc. reported net income of $329 million for the first quarter ended March 31, 2002, an increase from $287 million in the same period of 2001. This growth was driven by higher premiums, particularly in the International and Reinsurance segments, and improved underwriting results in the Auto & Home segment. The company also saw a decrease in net investment losses compared to the prior year. Total revenues increased to $8,002 million from $7,790 million, with premiums rising by 6%. However, net investment income saw a slight decrease of 1%, primarily due to lower income from equity securities and other limited partnerships, partly offset by increased income from fixed maturities and mortgage loans. The company continued its share repurchase program, acquiring shares for $240 million during the quarter. Significant legal proceedings are ongoing, with provisions made for estimated losses.
Key Highlights
- 1Net income increased by 14.6% to $329 million in Q1 2002 compared to $287 million in Q1 2001.
- 2Total revenues grew by 2.7% to $8,002 million, driven by a 6% increase in premiums.
- 3Net investment income decreased slightly by 1% to $2,789 million, impacted by lower returns from equity securities and partnerships.
- 4The company repurchased $240 million of its common stock during the quarter as part of its ongoing repurchase program.
- 5The Auto & Home segment showed significant improvement, moving from a net loss of $26 million in Q1 2001 to a net income of $21 million in Q1 2002, attributed to better underwriting results.
- 6The International segment experienced substantial premium growth of 112%, largely due to acquisitions and specific annuity contract sales.
- 7MetLife is actively managing significant legal proceedings, including sales practices claims, asbestos-related claims, and other litigation, with provisions made for estimated losses.