METLIFE INC Quarterly Report for Q2 Ended Jun 30, 2009

Summary

MetLife Inc. reported a net loss of $1.433 billion, or $1.74 per diluted share, for the second quarter of 2009, a significant decline from the $915 million net income ($1.26 per diluted share) reported in the same period of 2008. This was primarily driven by substantial net investment losses of $3.829 billion, largely due to increased losses on derivatives and impairments across various asset classes, reflecting ongoing market volatility. Premiums, fees, and other revenues saw a modest increase, but were outpaced by the investment losses and higher policyholder benefits. The company maintained a strong liquidity position with $13.2 billion in cash and cash equivalents, though it is holding higher than usual levels of short-term investments to navigate market uncertainty. Management highlighted ongoing cost reduction initiatives and a focus on disciplined underwriting and hedging strategies to manage the challenging economic environment.

Key Highlights

• 1Net loss of $1.433 billion for Q2 2009, down from a net income of $915 million in Q2 2008.
• 2Diluted loss per share of $1.74 in Q2 2009, compared to diluted income per share of $1.26 in Q2 2008.
• 3Total revenues decreased to $8.266 billion in Q2 2009 from $12.049 billion in Q2 2008, primarily due to lower net investment income and increased net investment losses.
• 4Net investment losses significantly increased to $3.829 billion in Q2 2009, driven by derivatives and impairments, compared to $357 million in Q2 2008.
• 5Policyholder benefits and claims increased to $6.946 billion in Q2 2009 from $6.579 billion in Q2 2008.
• 6Other expenses decreased to $2.031 billion in Q2 2009 from $2.607 billion in Q2 2008, reflecting cost reduction initiatives.
• 7Cash and cash equivalents stood at $13.213 billion at June 30, 2009, demonstrating continued liquidity.

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