Summary
MetLife Inc. reported its first quarter 2018 financial results, showing a significant increase in net income available to common shareholders, primarily driven by favorable changes in net derivative gains and the impact of U.S. Tax Reform. Despite a slight decrease in overall sales compared to the prior year, driven by mixed performance across segments and product lines, the company demonstrated improved profitability. Net investment income declined due to lower investment yields and higher interest credited expenses, but this was partially offset by a larger asset base and favorable underwriting experience. The company's adjusted earnings also saw a notable increase, reflecting the positive impact of tax reform, higher net investment income from a growing asset base, and improved underwriting, although this was tempered by higher interest credited expenses and lower investment yields. MetLife continued its share repurchase program, indicating confidence in its financial position and commitment to returning capital to shareholders.
Financial Highlights
37 data points| Revenue | $14.80B |
| Operating Expenses | $3.37B |
| Operating Income | $1.25B |
| Net Income | $1.25B |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 1.04B |
| Shares Outstanding (Diluted) | 1.04B |
Key Highlights
- 1Net income available to MetLife, Inc.'s common shareholders increased by $380 million to $1,247 million, driven by favorable changes in net derivative gains and the impact of U.S. Tax Reform.
- 2Adjusted earnings available to common shareholders increased by $102 million (net of tax) to $1,423 million, reflecting the positive impact of U.S. Tax Reform, higher net investment income, favorable underwriting, and lower expenses.
- 3Total revenues slightly decreased to $14,805 million from $14,964 million in the prior year, with a decline in net investment income partially offset by improved net derivative gains and other revenues.
- 4The company repurchased $1.0 billion of its common stock in the first quarter of 2018, demonstrating its commitment to returning capital to shareholders.
- 5Total assets decreased to $712,584 million from $719,892 million at the end of the prior year, primarily due to a decrease in separate account assets.
- 6The company announced the issuance of $494 million in Series D preferred stock in March 2018 to bolster its capital position.
- 7The company continues to address material weaknesses identified in internal control over financial reporting related to certain group annuity reserves and assumed variable annuity guarantee reserves, with remediation efforts ongoing.