This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MetLife Announces Fourth Quarter & Full Year 2012 Results

MetLife, Inc. (NYSE: MET) today reported the following results for the fourth quarter and full year 2012:

Fourth Quarter Results

MetLife reported operating earnings* of $1.4 billion, or $1.25 per share, up 10% over the fourth quarter of 2011. Growth was driven by a 21% increase in operating earnings in the Americas and a 26% increase (34% when adjusted for the impact of foreign currency exchange rates) in the Europe, Middle East and Africa (EMEA) segment. Operating earnings in Asia were down 24% primarily due to the annual review of actuarial assumptions.

Fourth quarter 2012 operating earnings included the following items:
  • variable investment income above the company’s 2012 quarterly plan range by $80 million, or $0.07 per share, after tax and the impact of deferred policy acquisition costs (DAC);
  • favorable claim development related to prior accident years in the company’s property & casualty business of $13 million, or $0.01 per share, after tax;
  • catastrophes of $70 million, or $0.06 per share, after tax, above the company’s quarterly plan provision;
  • a $13 million, or $0.01 per share, after tax, negative impact from the annual global review of assumptions related to DAC, reserves and certain intangibles; and
  • certain reorganization costs of $23 million, or $0.02 per share, after tax.

On a GAAP basis, MetLife reported fourth quarter 2012 net income of $96 million, or $0.09 per share. Net income includes:
  • a deferred tax benefit of $324 million related to the conversion of the company’s Japan branch to a subsidiary and
  • a total after tax charge of $752 million associated with the global review of assumptions related to DAC, reserves and certain intangibles, of which $342 million, after tax, was reflected in the after tax total of $855 million in net derivative losses for the quarter. MetLife uses 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 $13.2 billion, up 15% over the fourth quarter of 2011. Excluding pension closeout sales (which often fluctuate significantly from quarter to quarter), total premiums, fees & other revenues grew 6%.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs