Summary
MetLife Inc. reported strong financial results for the second quarter of 2010, with a significant turnaround from the prior year. Income from continuing operations, net of income tax, increased to $1.54 billion, a substantial improvement from a loss of $1.42 billion in the same period of 2009. This recovery was primarily driven by a favorable change of $5.3 billion in net investment gains (losses), with the company reporting gains of $1.5 billion compared to losses of $3.8 billion in the prior year. Operating earnings available to common shareholders also saw a significant increase, rising to $1.02 billion from $723 million in the prior year. The company highlighted improved market conditions as a key factor in this turnaround, leading to higher net investment income, increased policy fees, and reduced variable annuity guarantee benefit costs. Efforts to manage expenses through the "Operational Excellence" initiative also contributed to the improved profitability. The company also noted progress on its pending acquisition of Alico, expected to close by the end of 2010, which will expand its international reach.
Financial Highlights
34 data points| Revenue | $14.14B |
| Operating Expenses | $3.41B |
| Operating Income | $2.31B |
| Interest Expense | $369.00M |
| Net Income | $1.56B |
| EPS (Basic) | $1.85 |
| EPS (Diluted) | $1.84 |
| Shares Outstanding (Basic) | 822.91M |
| Shares Outstanding (Diluted) | 830.47M |
Key Highlights
- 1MetLife reported a net income of $1.55 billion for the quarter, a significant improvement from a net loss of $1.40 billion in the prior year quarter.
- 2Operating earnings available to common shareholders increased by $299 million year-over-year, reaching $1.02 billion.
- 3Net investment gains (losses) swung from a loss of $3.83 billion in Q2 2009 to a gain of $1.47 billion in Q2 2010, a $5.3 billion swing.
- 4Total revenues increased substantially to $14.25 billion from $8.27 billion in the prior year quarter, driven by improved investment income and net investment gains.
- 5The company is progressing with its pending acquisition of Alico, expected to close by the end of 2010.
- 6Investments in fixed maturity securities available-for-sale grew to $246.3 billion at fair value, up from $227.6 billion at the end of 2009.
- 7Total assets increased to $573.9 billion from $539.3 billion at the end of 2009.