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MetLife, Inc. (NYSE: MET) today reported the following results for the third quarter of 2012:
MetLife reported operating earnings* of $1.4 billion, or $1.32 per share, up 47% over the third quarter of 2011. The Americas segment reported an increase in operating earnings of 58%, partly due to several items that negatively impacted third quarter 2011 results, and the Asia segment reported a 17% increase. Reported operating earnings for the Europe, Middle East and Africa (EMEA) segment were down 5%, but up 20% when adjusted for the impact of foreign currency exchange rates.
On a GAAP basis, MetLife reported a net loss of $984 million, or $0.92 per share, including a $1.6 billion, after tax, goodwill impairment, which reflects the impact of current market and economic conditions on the estimated fair value of the U.S. retail annuity business. Also included in the net loss were net derivative losses of $467 million, after tax, which reflect MetLife’s use of derivatives (as part of its broader asset-liability management strategy) to hedge certain risks, such as movements in interest rates 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.
Premiums, fees & other revenues* were $11.6 billion, down 1% from the third quarter of 2011. Excluding pension closeout sales (which often fluctuate significantly from quarter to quarter) and the impact of foreign currency exchange rates, total premiums, fees & other revenues grew 2%.
Net investment income* was $5.0 billion, up 2% over the third quarter of 2011 and reflecting variable investment income above the plan range by $3 million, after tax and the impact of deferred acquisition costs (“DAC”).
Book value, excluding accumulated other comprehensive income (“AOCI”), was $47.70 per share, up 3% over the third quarter of 2011.