Summary
MetLife, Inc. (MET) reported mixed financial results for the third quarter of 2008, impacted by significant global financial market disruptions. Net income available to common shareholders decreased by 39% year-over-year to $600 million, or $0.83 per diluted share, primarily due to a substantial increase in losses from discontinued operations, largely stemming from the split-off of its interest in Reinsurance Group of America (RGA). Total revenues grew by 16% to $13.4 billion, driven by increases in premiums and fees across several segments, particularly Institutional and International. However, higher expenses, notably in DAC amortization and corporate costs related to an efficiency initiative, also pressured profitability. The company's investment portfolio experienced increased unrealized losses due to deteriorating market conditions, with net investment income declining 10% year-over-year, though this was partially offset by gains from derivatives. Despite the challenging environment, MetLife highlighted stable policyholder lapse and surrender rates in its Individual and Institutional segments and maintained a strong liquidity position. The company also issued common stock in October 2008, raising $2.3 billion to bolster its capital base.
Financial Highlights
20 data points| Revenue | $13.35B |
| Operating Expenses | $11.77B |
| Net Income | $630.00M |
| EPS (Basic) | $0.84 |
| EPS (Diluted) | $0.83 |
Key Highlights
- 1Net income available to common shareholders decreased 39% to $600 million ($0.83/share) from $985 million ($1.29/share) in Q3 2007.
- 2Total revenues increased 16% to $13.4 billion, driven by premium growth across segments.
- 3Net investment income decreased 10% to $4.1 billion due to lower yields, partially offset by higher average invested assets.
- 4Net investment gains (losses) improved significantly, turning from a $209 million loss in Q3 2007 to a $745 million gain, primarily due to derivative gains offsetting security impairments.
- 5Other expenses increased 18% to $2.9 billion, driven by higher DAC amortization, corporate initiatives, and legal costs.
- 6Discontinued operations resulted in a loss of $431 million, largely due to the RGA split-off transaction, compared to income of $76 million in Q3 2007.
- 7The company ended the quarter with $20.2 billion in cash and cash equivalents, and maintained $3.3 billion in committed credit facilities.