Early Access

10-QPeriod: Q1 FY2014

METLIFE INC Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 8, 2014For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife, Inc.'s first quarter 2014 report shows a net income attributable to MetLife, Inc. of $1.328 billion, or $1.14 per diluted share, a notable increase from $986 million, or $0.87 per diluted share, in the same period of the prior year. This improvement was primarily driven by a significant favorable change in net derivative gains (losses) compared to the prior year, which more than offset an unfavorable change in net investment gains (losses), largely due to an impairment loss related to the disposition of MAL. While total operating revenues saw a slight increase, driven by higher premiums and fees, net investment income decreased year-over-year due to the sustained low interest rate environment. The company also reported an increase in operating expenses, partly due to charges related to a licensing matter settlement. Despite these mixed operational results, the company's overall financial position remains robust, with total assets growing and a focus on strategic initiatives and capital management, including ongoing mergers and the pending disposition of its MAL subsidiary.

Financial Statements
Beta
Revenue$17.09B
Operating Expenses$4.16B
Operating Income$1.30B
Net Income$1.33B
EPS (Basic)$1.15
EPS (Diluted)$1.14
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.14B

Key Highlights

  • 1Net income attributable to MetLife, Inc. increased by approximately 35% year-over-year to $1.328 billion.
  • 2Diluted earnings per common share rose to $1.14 from $0.87 in the prior year's first quarter.
  • 3Total operating revenues slightly increased to $17.116 billion, driven by higher premiums and policy fees.
  • 4Net investment income decreased by approximately 17% year-over-year to $5.035 billion, impacted by the low interest rate environment.
  • 5Net derivative gains (losses) swung favorably to $343 million in Q1 2014 from a loss of $630 million in Q1 2013, significantly boosting net income.
  • 6The company recognized an impairment loss of $495 million related to the pending disposition of its subsidiary, MetLife Assurance Limited (MAL), impacting net investment gains (losses).
  • 7Operating earnings available to common shareholders decreased slightly by $65 million year-over-year to $1.562 billion, influenced by unfavorable mortality and morbidity experience and lower investment yields, partially offset by improved equity market performance and lower interest crediting expenses.

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