Summary
MetLife Inc.'s third-quarter 2020 results show a mixed financial performance, impacted by macroeconomic conditions and the ongoing COVID-19 pandemic. While adjusted earnings available to common shareholders saw a favorable year-over-year increase, driven by expense management and higher net investment income from a larger asset base, reported net income available to common shareholders declined significantly. This decrease was primarily due to a substantial unfavorable swing in net derivative gains (losses), a common occurrence in periods of market volatility. The company continues to navigate a low-interest-rate environment, which pressures investment yields and crediting rates. Despite these challenges, MetLife has demonstrated proactive capital management by raising capital through preferred stock and senior debt issuances, and maintaining a strong liquidity position. The pending acquisition of Versant Health in vision care is expected to close by year-end 2020, signaling continued strategic investment in growth areas.
Financial Highlights
35 data points| Revenue | $16.02B |
| Operating Expenses | $3.47B |
| Net Income | $706.00M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 908.70M |
| Shares Outstanding (Diluted) | 913.70M |
Key Highlights
- 1Adjusted earnings available to common shareholders increased $388 million year-over-year for the three months ended September 30, 2020, driven by expense management and a larger asset base.
- 2Reported net income available to common shareholders decreased significantly by $1.5 billion for the three months ended September 30, 2020, primarily due to an unfavorable change in net derivative gains (losses).
- 3The company raised $3.0 billion in capital during the first nine months of 2020 through preferred stock and senior debt issuances.
- 4MetLife maintained a strong liquidity position with $7.8 billion in cash and liquid assets at the holding companies as of September 30, 2020.
- 5The company is on track to close the acquisition of Versant Health, a managed vision care company, in the fourth quarter of 2020 for approximately $1.675 billion.
- 6Total assets grew to $780.5 billion at September 30, 2020, up from $740.5 billion at December 31, 2019.
- 7MetLife's investment portfolio remained heavily weighted towards fixed income securities (80% of the portfolio), with a significant portion in U.S. and foreign corporate securities.