Summary
MetLife Inc. reported a strong financial turnaround for the first quarter ended March 31, 2010, compared to the same period in the prior year. The company swung to a net income of $835 million, or $0.97 per diluted share, a significant improvement from a net loss of $548 million, or $(0.71) per diluted share, in Q1 2009. This recovery was driven by a substantial increase in net investment income, which rose by 33.2% to $4.34 billion, and a positive swing in net investment gains/losses from a loss of $906 million to a gain of $72 million. Operating earnings available to common shareholders also saw a significant jump, reaching $834 million from $131 million in the prior year period. The company highlighted improving market conditions as a key driver for this performance, leading to higher yields on its investment portfolio and increased sales in several business lines. However, higher unemployment levels continued to dampen demand for certain products. MetLife also announced a pending acquisition of Alico for $6.8 billion in cash and stock, expected to close by the end of 2010, which is not anticipated to have a material impact on 2010 financial results due to its timing. The company's robust liquidity and capital position remain strong, with $11.3 billion in liquid assets and a senior credit facility of up to $5.0 billion secured for the Alico acquisition.
Financial Highlights
33 data points| Revenue | $13.10B |
| Operating Expenses | $2.93B |
| Operating Income | $800.00M |
| Interest Expense | $370.00M |
| Net Income | $835.00M |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.97 |
| Shares Outstanding (Basic) | 822.65M |
| Shares Outstanding (Diluted) | 828.62M |
Key Highlights
- 1Net income turned positive, reaching $835 million ($0.97/share diluted) in Q1 2010, a substantial improvement from a net loss of $548 million ($(0.71)/share diluted) in Q1 2009.
- 2Net investment income increased by 33.2% to $4.34 billion, driven by higher yields and growth in invested assets.
- 3Net investment gains (losses) improved significantly, swinging from a loss of $906 million in Q1 2009 to a gain of $72 million in Q1 2010.
- 4Operating earnings available to common shareholders surged to $834 million from $131 million in the prior year period, reflecting improved market conditions and operational efficiencies.
- 5The company announced a pending acquisition of Alico for $6.8 billion, expected to close by the end of 2010.
- 6Total assets grew to $565.57 billion as of March 31, 2010, from $539.31 billion at December 31, 2009.
- 7MetLife's liquidity remains strong, with $11.3 billion in liquid assets and a $5.0 billion senior credit facility in place to support the Alico acquisition.