METLIFE INC Quarterly Report for Q1 Ended Mar 31, 2016

Summary

MetLife Inc. reported its first quarter 2016 financial results, showing a slight increase in net income driven by favorable derivative gains, which offset a decline in net investment income. Total revenues decreased compared to the prior year period, influenced by lower net investment income due to sustained low interest rates and volatile equity markets. The company highlighted progress in its strategic initiatives, including plans for separating a substantial portion of its U.S. Retail segment and a recently announced agreement to sell its U.S. Retail advisor force. These strategic moves aim to streamline operations and enhance shareholder value. The company's investment portfolio remains a significant driver of its financial performance, with ongoing management of interest rate and market risks through hedging strategies and a focus on long-term asset-liability management.

Key Highlights

• 1Net income increased by $40 million to $2,203 million for the three months ended March 31, 2016, compared to $2,163 million in the prior year period.
• 2Net derivative gains (losses) were significantly favorable, contributing $1,335 million in Q1 2016 compared to $821 million in Q1 2015.
• 3Net investment income decreased to $4,559 million from $5,461 million, primarily due to lower investment yields from sustained low interest rates and volatile equity markets.
• 4The company announced plans to separate a substantial portion of its U.S. Retail segment and entered into an agreement to sell its U.S. Retail advisor force.
• 5Operating earnings available to common shareholders decreased by $309 million to $1,329 million, net of income tax.
• 6Total assets grew to $917.4 billion at March 31, 2016, from $877.9 billion at December 31, 2015.
• 7The company's effective tax rate was 25% in Q1 2016, down from 29% in Q1 2015, aided by a one-time tax benefit in Japan.

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