Summary
MetLife Inc. reported strong financial results for the third quarter and the first nine months of 2019. Net income available to common shareholders more than doubled in the third quarter to $2.15 billion, up from $880 million in the prior year period, driven by significant gains in net derivative results. For the nine months, net income available to common shareholders was $5.19 billion, a substantial increase from $2.97 billion in the same period last year. Adjusted earnings, a non-GAAP measure used by management, showed a decrease in the third quarter compared to the prior year, primarily due to unfavorable actuarial assumption reviews and underwriting results. However, for the nine-month period, adjusted earnings saw a substantial increase, also largely driven by favorable derivative results. The company's total assets grew to $742.8 billion at September 30, 2019, up from $687.5 billion at December 31, 2018. This growth was supported by increases in investments and cash, reflecting positive net flows in the investment portfolio. The balance sheet remains robust, with total liabilities also increasing but being well-covered by assets. MetLife continued its commitment to shareholder returns through common stock repurchases, totaling $2.0 billion for the first nine months of 2019, and dividend payments. The company's capital management strategy remains focused on maintaining financial strength and credit ratings.
Financial Highlights
36 data points| Revenue | $18.68B |
| Operating Expenses | $3.44B |
| Net Income | $2.18B |
| EPS (Basic) | $2.31 |
| EPS (Diluted) | $2.30 |
| Shares Outstanding (Basic) | 929.60M |
| Shares Outstanding (Diluted) | 936.40M |
Key Highlights
- 1Net income available to common shareholders significantly increased in Q3 2019 to $2.15 billion, driven by favorable derivative results.
- 2Total assets grew to $742.8 billion by September 30, 2019, up from $687.5 billion at year-end 2018.
- 3Adjusted earnings decreased in Q3 2019 compared to the prior year due to actuarial assumption reviews and underwriting, but increased significantly for the nine-month period.
- 4The company returned $2.0 billion to shareholders through common stock repurchases in the first nine months of 2019.
- 5MetLife's investment portfolio remains diversified, with a strong focus on fixed-income securities, and management is actively hedging market risks using derivatives.
- 6The company is subject to various litigation and regulatory matters, but management believes that adequate provisions have been made for probable and reasonably estimable losses.
- 7MetLife continues to focus on its core businesses and markets where it can achieve scale, with an ongoing emphasis on cost reduction and digital transformation.