Summary
MetLife, Inc. (MET) reported its financial results for the second quarter ended June 30, 2019. The company demonstrated a strong performance, with net income available to common shareholders significantly increasing year-over-year, primarily driven by favorable changes in net derivative and net investment gains (losses). Adjusted earnings available to common shareholders remained relatively flat, reflecting a balance of business growth, market factor impacts, and underwriting results. The company continued to execute its capital management strategy, with substantial share repurchases and dividend payments. Total assets grew to $732.2 billion from $687.5 billion at the end of 2018, with total investments increasing to $461.1 billion. Liabilities also grew, driven by increases in future policy benefits and policyholder account balances. The company's equity base strengthened, with total MetLife, Inc. stockholders' equity reaching $63.8 billion. MetLife is actively managing its investment portfolio and hedging market risks with derivatives, noting the impact of market factors on its results, particularly interest rate movements and equity market performance. The company also provided an update on pending legal and regulatory matters, including a proposed settlement for a class action lawsuit related to group annuity benefits.
Financial Highlights
36 data points| Revenue | $17.50B |
| Operating Expenses | $3.39B |
| Net Income | $1.74B |
| EPS (Basic) | $1.78 |
| EPS (Diluted) | $1.77 |
| Shares Outstanding (Basic) | 946.20M |
| Shares Outstanding (Diluted) | 952.90M |
Key Highlights
- 1Net income available to MetLife, Inc.’s common shareholders increased to $1.68 billion for the three months ended June 30, 2019, up from $845 million in the prior year period.
- 2Total assets grew to $732.2 billion as of June 30, 2019, compared to $687.5 billion as of December 31, 2018.
- 3Adjusted earnings available to common shareholders remained relatively flat at $1.32 billion for the three months ended June 30, 2019, compared to $1.33 billion in the prior year period.
- 4The company repurchased approximately 15.8 million shares of common stock during the quarter for $750 million.
- 5MetLife announced an additional $2.0 billion authorization for common stock repurchases on July 31, 2019.
- 6The company's investment portfolio is heavily weighted towards fixed income, with $318.7 billion in fixed maturity securities available-for-sale at estimated fair value as of June 30, 2019.
- 7MetLife is subject to various litigation and regulatory matters, with a proposed settlement of $80 million for a class action lawsuit related to Total Control Accounts.