Summary
MetLife, Inc. reported its financial results for the third quarter of 2015, ending September 30. The company experienced a decline in net income attributable to common shareholders to $1.197 billion, or $1.06 per diluted share, compared to $2.064 billion, or $1.81 per diluted share, in the same period of the previous year. This decrease was largely due to a significant one-time tax charge of $557 million and a related $362 million charge for interest on uncertain tax positions, impacting the reported earnings. Operating earnings available to common shareholders also saw a substantial decline, falling to $705 million from $1.825 billion year-over-year, primarily driven by lower investment yields, unfavorable actuarial assumption reviews, and weaker underwriting results, further compounded by the aforementioned tax-related charges. Despite the challenges impacting profitability, MetLife demonstrated resilience in its core business segments with sales growth in several areas, particularly in retail annuities and group benefits. Total assets remained substantial at $882.46 billion, though slightly down from $902.34 billion at the end of 2014. The company continued its capital return activities, repurchasing common stock and managing its preferred stock. MetLife's strategic focus remains on disciplined underwriting, expense management, and balancing its product mix to navigate the low interest rate environment and regulatory uncertainties, including its designation as a non-bank SIFI.
Financial Highlights
35 data points| Revenue | $18.03B |
| Operating Expenses | $4.53B |
| Operating Income | $4.37B |
| Net Income | $1.20B |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.06 |
| Shares Outstanding (Basic) | 1.12B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Net income available to MetLife, Inc.’s common shareholders decreased to $1.197 billion ($1.06 per diluted share) for the three months ended September 30, 2015, compared to $2.064 billion ($1.81 per diluted share) for the same period in 2014.
- 2Operating earnings available to common shareholders significantly decreased by $1.12 billion to $705 million for the three months ended September 30, 2015, compared to $1.825 billion for the same period in 2014.
- 3A substantial portion of the earnings decline was attributed to a $557 million one-time tax charge and a related $362 million charge for interest on uncertain tax positions.
- 4Total assets decreased slightly to $882.46 billion at September 30, 2015, from $902.34 billion at December 31, 2014.
- 5The company repurchased $1.1 billion of its common stock during the nine months ended September 30, 2015, and also completed the repurchase and redemption of its Series B preferred stock.
- 6MetLife's investment portfolio is heavily weighted towards fixed income securities, with over 80% in fixed maturity securities and mortgage loans, reflecting a strategy aligned with its liabilities.
- 7The company is actively managing various risks, including interest rate, foreign currency, credit, and equity market risks, through its investment portfolio and the use of derivatives.