DOW JONES NEWSWIRES
MetLife Inc.'s (MET) fourth-quarter earnings surged as the
insurer posted strong international growth and as a derivative gain
boosted bottom-line results.
Despite expected continued softness in the global economy,
MetLife executives have said profits were likely to rise in 2012,
driven by improved results in its U.S. retirement-products business
and its international operations.
MetLife has also been grappling with an uncertain regulatory
environment. Last month, MetLife said it would stop originating
forward residential mortgages, its latest move to avoid increased
regulatory scrutiny and stay focused on its core operations. In
December, the insurer agreed to sell most of its U.S. retail
deposit business to General Electric Co.'s (GE) GE Capital
Financial Inc.
MetLife, the biggest U.S. insurer, posted a profit of $1.13
billion, or $1.06 a share, up from $51 million, or 5 cents a share,
a year earlier.
Operating earnings, which exclude investment gains and losses,
rose to $1.31 a share from $1.18 a share. In December, MetLife
predicted operating earnings of $1.16 to $1.26 a share.
Operating revenue, which strips out investment effects, rose 19%
to $16.41 billion. Analysts polled by Thomson Reuters had projected
operating revenue of $16.81 billion.
Premiums, fees and other revenue rose 23%. Total expenses rose
20%.
In the U.S., operating earnings rose 4.3%. In the international
segment, operating earnings jumped 89%, helped by the company's
2010 acquisition of Alico, a major life-insurance unit, from
American International Group Inc. (AIG). The unit has helped to
expand MetLife's reach in Asia, Europe and Latin America.
In November, MetLife reorganized its business structure into
three geographic regions--the Americas; Europe, the Middle East and
Africa; and Asia--to better reflect its global reach.
Like its fellow insurers, MetLife uses derivatives to hedge a
number of risks, including changes in interest rates and
fluctuations in foreign currencies. In the most recent period, the
company booked total derivative net gains of $351 million after tax
compared with a year-earlier derivative net loss of $1.1 billion.
Net investment income came in at $4.94 billion.
Shares were up 1.6% to $37.92 after hours as the company's
operating results beat its expectations. The stock is up 20% so far
this year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com