Summary
MetLife Inc.'s first quarter 2020 filing shows a significant increase in net income available to common shareholders, driven primarily by a substantial positive swing in net derivative gains (losses). Total revenues increased to $18.31 billion, while total expenses decreased to $12.67 billion, resulting in a pre-tax income of $5.64 billion. The company experienced an increase in adjusted earnings available to common shareholders by $25 million year-over-year, reaching $1.45 billion. This growth was supported by higher net investment income due to a larger asset base, decreased expenses, and higher asset-based fees. However, lower investment yields, increased deferred policy acquisition costs (DAC) amortization, and unfavorable underwriting partially offset these positives. The company also raised $2.0 billion in capital markets during the quarter to enhance financial flexibility amid the evolving economic environment. Despite the strong reported net income, the company highlighted the ongoing impact and uncertainty of the COVID-19 pandemic on its business, investment portfolio, and financial results, particularly noting increased volatility and potential for higher claims. MetLife is actively managing its capital and liquidity, maintaining substantial liquid assets and credit facilities to navigate the current economic climate.
Financial Highlights
36 data points| Revenue | $18.31B |
| Operating Expenses | $3.27B |
| Net Income | $4.40B |
| EPS (Basic) | $4.78 |
| EPS (Diluted) | $4.75 |
| Shares Outstanding (Basic) | 914.10M |
| Shares Outstanding (Diluted) | 920.00M |
Key Highlights
- 1Net income available to common shareholders surged to $4.37 billion, up from $1.35 billion in the prior year, largely due to a significant favorable change in net derivative gains (losses) of $4.1 billion.
- 2Adjusted earnings available to common shareholders increased by $25 million to $1.45 billion, driven by higher net investment income, lower expenses, and increased asset-based fees, partially offset by lower investment yields and unfavorable underwriting.
- 3Total revenues grew to $18.31 billion, while total expenses decreased to $12.67 billion, leading to a significant increase in income before taxes.
- 4The company raised $1 billion in preferred stock and $1 billion in senior debt during the quarter, enhancing its capital flexibility and liquidity in response to the economic uncertainty caused by the COVID-19 pandemic.
- 5The company maintained a strong liquidity position with $5.3 billion in cash and liquid assets at the holding companies as of March 31, 2020.
- 6MetLife's investment portfolio experienced reduced yields and increased credit loss provisions, particularly in fixed maturity securities available-for-sale, reflecting the economic impact of the COVID-19 pandemic.
- 7The company is closely monitoring the impact of the COVID-19 pandemic, which has led to increased market volatility, potential for higher claims, and uncertainty in future economic conditions.