MetLife, Inc. announced its results for the third quarter ended September 30, 2019.
Third Quarter Results Summary
• Net income of $2.2 billion, or $2.30 per share, compared to net income of $880 million, or $0.88 per share, in the third quarter of 2018.
• Adjusted earnings of $1.2 billion, or $1.27 per share, compared to adjusted earnings of $1.4 billion, or $1.38 per share in the third quarter of 2018.
• Adjusted earnings, excluding total notable items, of $1.4 billion, or $1.54 per share, compared to adjusted earnings, excluding total notable items of $1.5 billion, or $1.53 per share in the third quarter of 2018.
• Book value of $70.71 per share, up 44 percent from $48.94 per share at September 30, 2018.
• Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $48.56 per share, up 13 percent from $42.97 per share at September 30, 2018.
• Return on equity (ROE) of 13.7 percent.
• Adjusted ROE, excluding AOCI other than FCTA, of 10.7 percent.
• Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA), of 12.9 percent.
“MetLife reported solid third quarter adjusted earnings per share, driven by volume growth, variable investment income and the cumulative impact of our capital management,” said Michel Khalaf, president and CEO of MetLife, Inc. “Our performance highlights MetLife’s resilience in the face of market headwinds and the strength of our diverse mix of businesses.”
Third Quarter 2019 Summary
MetLife reported third quarter 2019 premiums, fees and other revenues of $12.6 billion, up 5 percent over the third quarter of 2018. Adjusted premiums, fees and other revenues were $12.4 billion, up 4 percent, and 4 percent on a constant currency basis over the prior-year period. Excluding pension risk transfers, adjusted premiums, fees and other revenues were $11.2 billion, up 2 percent, and 2 percent on a constant currency basis.
Net investment income was $4.6 billion, up 3 percent. The increase in net investment income was driven by favorable changes in the estimated fair value of certain securities which do not qualify as separate accounts under GAAP. On an adjusted basis, net investment income was $4.5 billion.
Net derivative gains amounted to $1.3 billion, or $991 million after tax during the quarter.
Net income was $2.2 billion, compared to net income of $880 million in the third quarter of 2018. On a per share basis, net income was $2.30, compared to net income of $0.88 in the prior-year period.
MetLife reported adjusted earnings of $1.2 billion, down 14 percent, and down 13 percent on a constant currency basis. On a per share basis, which includes the impact of share repurchases, adjusted earnings were $1.27, down 8 percent from the prior-year period.
Annual Actuarial Assumption Review
In the third quarter of 2019, MetLife performed the company's annual global actuarial assumption review. The actuarial assumption review and other insurance adjustments during the quarter reduced net income and adjusted earnings by $179 million and $160 million, respectively.
