Summary
MetLife, Inc. reported its financial results for the third quarter ended September 30, 2013. The company demonstrated a significant year-over-year improvement in net income available to common shareholders, largely driven by the absence of a substantial goodwill impairment charge recorded in the prior year's period. However, operating earnings also saw an increase, reflecting higher asset-based fees and a favorable change in net derivative gains, partially offset by less favorable mortality and claims experience and increased expenses. In terms of strategic initiatives, MetLife completed the acquisition of Provida, the largest private pension fund administrator in Chile, for $1.9 billion, aiming to bolster its presence in emerging markets. The company also continued its efforts to divest from non-core businesses, including the ongoing wind-down of MetLife Bank. Looking ahead, MetLife anticipates solid improvement in operating earnings for the full year, supported by sales growth in several businesses, disciplined underwriting, and expense management. The company remains focused on navigating a challenging economic environment, including sustained low interest rates, and continues to leverage its diversified business mix and geographic presence.
Financial Highlights
36 data points| Revenue | $16.34B |
| Operating Expenses | $3.98B |
| Operating Income | $2.37B |
| Net Income | $972.00M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.12B |
Key Highlights
- 1MetLife reported net income available to common shareholders of $942 million for Q3 2013, a significant improvement from a net loss of $984 million in Q3 2012, largely due to the absence of a goodwill impairment charge in the current period.
- 2Operating earnings available to common shareholders increased to $1.50 billion in Q3 2013 from $1.42 billion in Q3 2012, driven by higher asset-based fees and a favorable change in net derivative gains.
- 3The company completed the acquisition of Provida, Chile's largest private pension fund administrator, for $1.9 billion, strengthening its emerging markets strategy.
- 4Total assets decreased slightly to $822.64 billion at September 30, 2013, from $836.78 billion at December 31, 2012, primarily due to a reduction in investments.
- 5Total liabilities also decreased to $761.27 billion from $771.82 billion over the same period.
- 6MetLife's investment portfolio is heavily weighted towards fixed income securities and mortgage loans, comprising over 80% of the total investment portfolio.
- 7The company's financial condition and results of operations are materially affected by global capital markets and economic conditions, with specific focus on interest rates, credit spreads, equity prices, and foreign currency exchange rates.