MetLife, Inc. (NYSE: MET) today reported the following results for the second quarter of 2013:
MetLife reported operating earnings* of $1.6 billion, or $1.44 per share, up 11% over the second quarter of 2012. Operating earnings in the Americas grew 18% and Asia increased 18% (27% on a constant currency basis). Operating earnings in Europe, the Middle East and Africa (EMEA) decreased 13% on both a reported and constant currency basis. Adjusted for one-time items in both periods, EMEA operating earnings grew 9% on both a reported and constant currency basis.
On a GAAP basis, MetLife reported second quarter 2013 net income of $471 million, or $0.43 per share, including $1.1 billion, after tax, in net derivative losses. Increases in interest rates, changes in foreign currencies and the impact of MetLife’s own credit during the quarter contributed to the net derivative losses. 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 $11.9 billion, up 3% (6% on a constant currency basis) over the second quarter of 2012. Excluding pension closeout sales (which often fluctuate significantly from quarter to quarter), total premiums, fees & other revenues grew 4% (7% on a constant currency basis).
Book value, excluding accumulated other comprehensive income (AOCI) *, was $47.20 per share, down 3% from the second quarter of 2012, primarily due to net derivative losses that resulted in lower net income.
“MetLife delivered strong performance in the second quarter through favorable investment margins, expense discipline in the U.S. and good results in Asia,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. “We continued to execute on our strategy by growing our top line in emerging markets and shifting our business mix toward lower capital intensive products. We expect our strategy will continue to increase shareholder value over time.”