Summary
MetLife, Inc. reported a net income available to common shareholders of $615 million for the first quarter of 2008, a decrease of 37% compared to $983 million in the same period of 2007. This decline was primarily driven by a significant increase in net investment losses, largely due to derivatives and guaranteed benefit riders, which were partially offset by growth in premiums and fees across its operating segments. The company also experienced a decrease in net investment income, though this was largely due to lower yields across various investment types, somewhat mitigated by growth in the average asset base. The financial results reflect the ongoing volatility in global capital markets, with the company noting the continued stress experienced since the second half of 2007. Despite the challenging economic environment, MetLife's liquidity position remained strong, with cash and cash equivalents and short-term investments totaling $12.5 billion at the end of the quarter. The company also continued its share repurchase program, authorizing an additional $1 billion in February 2008.
Key Highlights
- 1Net income available to common shareholders decreased by 37% to $615 million compared to the prior year quarter, primarily due to increased net investment losses.
- 2Total revenues increased by 1% to $13.03 billion, driven by growth in premiums, fees and other revenues across all segments.
- 3Net investment income slightly decreased by 0.3% to $4.51 billion, impacted by lower yields across various investment types.
- 4Net investment losses widened significantly to $886 million from $38 million in the prior year, largely due to derivatives and guaranteed benefit riders.
- 5The company continued its robust share repurchase program, repurchasing 20.4 million shares for $1.3 billion during the quarter.
- 6Liquidity remained strong, with cash and cash equivalents and short-term investments totaling $12.5 billion at quarter-end.
- 7The Institutional segment saw a significant drop in income from continuing operations, largely due to higher net investment losses, though underlying business growth was positive.