OREANDA-NEWS. MetLife, Inc. (NYSE:MET) today announced the following results for the first quarter of 2016:

First Quarter Results

MetLife reported operating earnings* of $1.3 billion, down 19 percent from the first quarter of 2015, and 17 percent on a constant currency basis*. On a per share basis, operating earnings were $1.20, down 17 percent from the prior year quarter. Operating earnings in the Americas decreased 18 percent, and 16 percent on a constant currency basis. Operating earnings in Asia decreased 7 percent, and 5 percent on a constant currency basis. Operating earnings in Europe, the Middle East and Africa (EMEA) decreased 10 percent, and 3 percent on a constant currency basis.

First quarter 2016 operating earnings included the following items:

  • variable investment income below the company's 2016 quarterly plan range by $86 million, or $0.08 per share, after tax and the impact of deferred acquisition costs (DAC)
  • unfavorable catastrophe experience, which decreased operating earnings by $45 million, or $0.04 per share, after tax
  • a one-time tax benefit in Japan, partially offset by a tax charge in Chile, resulting in an overall increase in operating earnings of $10 million, or $0.01 per share, after tax

MetLife's operating return on equity (ROE), excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA)*, was 9.3 percent for the first quarter of 2016, and the company's tangible operating ROE* was 11.3 percent.

On a GAAP basis, MetLife reported first quarter 2016 net income of $2.2 billion, or $1.98 per share. Net income includes $868 million, after tax, in net derivative gains, reflecting changes in interest rates, equity markets and foreign currencies. MetLife uses derivatives as part of its broader asset-liability management strategy to hedge certain risks, such as movements in interest rates, equity markets and foreign currencies. This hedging activity often generates derivative gains or losses and creates fluctuations in net income because the risk being hedged may not have the same GAAP accounting treatment.

The first quarter variance between operating earnings and net income reflects a favorable impact of $824 million, after-tax, related to asymmetrical and non-economic accounting.

Premiums, fees & other revenues* were $11.9 billion, down 1 percent, but essentially unchanged on a constant currency basis over the first quarter of 2015.

Book value, excluding AOCI other than FCTA*, was $53.31 per share, up 6 percent from $50.45 at March 31, 2015.

"While market headwinds remain, we experienced volume growth and underwriting results were solid," said Steven A. Kandarian, chairman, president and CEO, MetLife, Inc. "We continue to make good progress on our initiatives to maximize shareholder value, including expense control and the planned separation of a substantial portion of the U.S. Retail business."

 

FIRST QUARTER 2016 SUMMARY
($ in millions, except per share data)         Three months ended March 31
          2016       2015         Change
Premiums, fees & other revenues         $ 11,905       $ 12,050         (1 )%
Total operating revenues         $ 16,611       $ 17,032         (2 )%
                                   
Operating earnings         $ 1,329       $ 1,638         (19 )%
Operating earnings per share         $ 1.20       $ 1.44         (17 )%
                                   
Net income         $ 2,195       $ 2,128         3 %
Net income per share         $ 1.98       $ 1.87         6 %
                                   
Book value per share, excluding AOCI other than FCTA         $ 53.31       $ 50.45         6 %
Book value per share – tangible common stockholders' equity         $ 44.17       $ 41.32         7 %
Book value per share         $ 67.10       $ 64.37         4 %