Summary
MetLife Inc. reported a strong performance for the third quarter of 2006, with net income available to common shareholders increasing by 35% year-over-year to $999 million, or $1.29 per diluted share. This growth was primarily driven by a significant increase in net investment gains, largely due to favorable mark-to-market adjustments on derivatives and improved investment income from higher interest rates and an expanded asset base. The company also saw continued business growth across most operating segments, contributing to higher premiums, fees, and other revenues. Despite the positive top-line and investment performance, overall expenses also rose, mainly due to increased interest expenses on debt, higher corporate spending, and investments in information technology and growth initiatives. These higher expenses were partially offset by reduced integration costs from the Travelers acquisition. Discontinued operations showed a net gain, primarily from real estate disposals, though this was lower than the prior year's substantial gains. The company's balance sheet remains robust, with total assets growing to $516.2 billion.
Key Highlights
- 1Net income available to common shareholders increased 35% to $999 million ($1.29/diluted share) for the three months ended September 30, 2006.
- 2Net investment gains increased significantly due to favorable mark-to-market on derivatives and higher investment income driven by interest rates and asset base growth.
- 3Total revenues grew 5% to $12.55 billion, driven by premiums, fees, and higher net investment income.
- 4Total expenses increased 2% to $11.24 billion, impacted by higher interest expenses and operating costs, partially offset by reduced integration expenses.
- 5The company ended the quarter with total assets of $516.2 billion and total stockholders' equity of $31.6 billion.
- 6The acquisition of Travelers continues to be integrated, with Travelers' operations included from July 1, 2005.