Summary
MetLife Inc.'s first quarter 2021 report shows a significant decrease in net income available to common shareholders, primarily driven by a substantial unfavorable change in net derivative gains (losses). While total revenues decreased compared to the prior year, adjusted earnings available to common shareholders saw a notable increase, signaling a positive underlying operational performance despite the derivative-related volatility. The company completed the sale of its U.S. property and casualty business in April 2021, which is expected to result in a gain in the second quarter. This disposition, along with other business adjustments, impacted segment results. Investment income showed improvement, supported by strong returns in private equity and a larger asset base. However, underwriting results were negatively affected by the ongoing impacts of the COVID-19 pandemic, leading to unfavorable mortality and morbidity experience in certain segments. MetLife continues to navigate a complex economic environment, marked by low interest rates and the ongoing effects of the COVID-19 pandemic, which has influenced market volatility and operational costs. The company's capital and liquidity positions remain robust, with various sources of funding available to meet obligations and strategic initiatives.
Financial Highlights
35 data points| Revenue | $15.56B |
| Operating Expenses | $3.15B |
| Net Income | $363.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 885.40M |
| Shares Outstanding (Diluted) | 892.10M |
Key Highlights
- 1Net income available to common shareholders decreased significantly to $290 million from $4.366 billion in the prior year, largely due to a $2.235 billion unfavorable change in net derivative gains (losses).
- 2Adjusted earnings available to common shareholders increased by $516 million to $1.965 billion, driven by higher investment yields (especially from private equity), a larger asset base increasing net investment income, and lower interest credited expenses.
- 3The company completed the disposition of Metropolitan Property and Casualty Insurance Company (MetLife P&C) in April 2021, anticipating a gain of approximately $1 billion in the second quarter. This disposition, however, reduced adjusted earnings by $109 million in the current quarter.
- 4Unfavorable underwriting, primarily due to impacts from the COVID-19 pandemic, led to a decrease in adjusted earnings by $268 million, particularly affecting mortality and morbidity experience.
- 5Total assets decreased to $769.8 billion from $795.1 billion at year-end 2020, while total liabilities also decreased, reflecting the sale of assets and liabilities related to MetLife P&C.
- 6The company maintained strong liquidity, with cash and cash equivalents of $19.6 billion at March 31, 2021. Total capital also remained substantial, reflecting the company's financial strength.
- 7The U.S. segment saw an increase in adjusted earnings by $48 million due to business growth and market factors, despite unfavorable mortality in Group Benefits which impacted adjusted earnings by $302 million.