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MetLife Announces Fourth Quarter & Full Year 2013 Results

MetLife, Inc. (NYSE:MET) today reported the following results for the fourth quarter and full year 2013:

Fourth Quarter Results

MetLife reported operating earnings* of $1.6 billion, up 14 percent over the fourth quarter of 2012. On a per share basis, operating earnings were $1.37, up 10 percent over the prior year quarter. Operating earnings in the Americas grew 13 percent. Operating earnings in Asia increased 64 percent on a reported basis and 74 percent on a constant currency basis. Operating earnings in Europe, the Middle East and Africa (EMEA) increased 51 percent on a reported basis and 48 percent on a constant currency basis. Partially offsetting these gains were larger losses in Corporate & Other.

Fourth quarter 2013 operating earnings included the following items:

  • variable investment income above the company’s 2013 quarterly plan range by $101 million, or $0.09 per share, after tax and the impact of deferred acquisition costs (DAC)
  • as previously announced, strengthening of asbestos claim reserves, which reduced operating earnings by $101 million or $0.09 per share, after tax
  • an increase in litigation-related reserves, which reduced operating earnings by $46 million or $0.04 per share, after tax
  • favorable catastrophe experience and prior year loss reserve development of $15 million and an $11 million benefit from tax-related items in EMEA, which increased operating earnings by $26 million or $0.02 per share, after tax

MetLife reported fourth quarter 2013 net income of $877 million, or $0.77 per share, including $242 million, 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.

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