Early Access

10-QPeriod: Q3 FY2007

METLIFE INC Quarterly Report for Q3 Ended Sep 30, 2007

Filed November 5, 2007For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife Inc. reported net income available to common shareholders of $985 million for the third quarter of 2007, a slight decrease of 1% compared to $999 million in the same period of 2006. Diluted earnings per common share remained flat at $1.29 for both periods. The company experienced a significant increase in net investment income, up 13% to $4.7 billion, driven by a larger asset base and higher yields, though management anticipates potential declines in income from limited partnership interests due to market volatility. However, this was offset by a substantial increase in net investment losses, which widened to $269 million from a gain of $256 million in the prior year, largely due to derivative mark-to-market losses and losses on fixed maturity securities repositioning. Overall, total revenues grew by 6% to $13.1 billion, driven by increases in premiums and fees across most segments, but higher policyholder benefits and claims, and increased other expenses also impacted profitability.

Key Highlights

  • 1Net income available to common shareholders decreased slightly by 1% to $985 million in Q3 2007, with diluted EPS flat at $1.29.
  • 2Net investment income increased by 13% to $4.7 billion, reflecting growth in the average asset base and higher yields.
  • 3Net investment losses widened significantly to $269 million in Q3 2007 from a gain of $256 million in Q3 2006, driven by derivative mark-to-market and fixed maturity securities losses.
  • 4Total revenues increased by 6% to $13.1 billion, supported by growth in premiums and fees across most operating segments.
  • 5Other expenses increased by 0.5% to $2.76 billion, with notable increases in the Individual segment driven by higher DAC amortization and business growth.
  • 6The company's total assets grew to $563.1 billion as of September 30, 2007, up from $527.7 billion at December 31, 2006.
  • 7MetLife continues to manage significant litigation and regulatory matters, including asbestos-related claims and sales practices claims, with provisions made for probable and estimable losses.

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