MetLife Posts 22% Drop in Second-Quarter Net Income
July 31, 2015 by Dennis Gorski
MetLife’s second-quarter net income dropped 22% to $1.04 billion.
Revenue for the quarter fell 2% to $17.4 billion, the company said.
“MetLife delivered strong double-digit operating earnings growth in the second quarter,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife. “Investment margins remained healthy despite persistent low interest rates, and underwriting margins improved year-over-year for the fourth consecutive quarter.”
The company’s operating earnings were $1.8 billion, an 11% increase over last year.
Total operating earnings for the Americas were $1.4 billion, up 4%, driven by investment and underwriting margins, as well as business growth.
In Asia, operating earnings were $425 million, up 31%. The total includes a one-time, beneficial tax rate change in Japan of $61 million, MetLife said. The company said the improvement was due to growth in Japan and continued strong growth in accident and health sales across the region, offset by a decline in retirement sales.
Operating units of MetLife have current Best’s Financial Strength Ratings of either A (Excellent) or A+ (Superior).
At the close of trading July 29, shares of MetLife (NYSE: MET) were priced at $57.22, a gain of 1.69% for the day.