Summary
MetLife Inc. reported its second quarter 2011 results, highlighting a significant increase in operating earnings, largely driven by the acquisition of ALICO completed in late 2010. The company saw growth in premiums and policy fees, particularly in its international segments and retirement products, supported by favorable equity market performance which boosted separate account balances. However, net income available to common shareholders declined year-over-year, primarily due to a substantial unfavorable swing in net derivative gains (losses) and increased net investment losses. While the ALICO acquisition contributed positively to operating earnings, the broader financial results were impacted by challenging market conditions, including increased catastrophe losses from severe weather in the U.S. and the earthquake in Japan, as well as a less favorable derivatives performance. The company continues to manage its investment portfolio with a focus on ALM principles to support its liabilities.
Financial Highlights
34 data points| Revenue | $17.15B |
| Operating Expenses | $4.70B |
| Operating Income | $1.78B |
| Net Income | $1.10B |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 1.06B |
| Shares Outstanding (Diluted) | 1.07B |
Key Highlights
- 1Total revenues increased by 21.3% to $17.15 billion, driven by the ALICO acquisition and improved market conditions leading to higher net investment income and policy fees.
- 2Income from continuing operations, net of income tax, decreased by 21.8% to $1.20 billion, primarily due to an unfavorable $1.13 billion change in net derivative gains (losses) and a $141 million increase in net investment losses.
- 3Operating earnings available to common shareholders increased by 45% to $1.33 billion, largely due to the ALICO acquisition, improved market conditions for separate accounts, and growth in international businesses.
- 4The company's total assets grew to $771.48 billion as of June 30, 2011, compared to $730.91 billion at December 31, 2010, driven by the ALICO acquisition and investment portfolio growth.
- 5MetLife's equity increased to $53.71 billion from $48.99 billion, reflecting net income and other comprehensive income, partially offset by the repurchase of convertible preferred stock.
- 6The company repurchased and canceled all of the convertible preferred stock received in the ALICO acquisition for $2.95 billion and issued $3.0 billion in common stock to fund this repurchase.
- 7The company is exploring the sale of MetLife Bank's depository business while continuing its residential mortgage business.