MetLife (MET) Q1 Earnings Top Estimates, Revenues Rise Y/Y
MetLife, Inc.’s MET first-quarter 2018 operating earnings of $1.36 per share beat the Zacks Consensus Estimate of $1.17 by 16.2%. However, the bottom line declined nearly 7% year over year.
MetLife, Inc. Price, Consensus and EPS Surprise
The reported quarter benefited from favorable underwriting, volume growth and a favorable positive impact of the tax reform.
The company generated operating revenues of $15.148 billion, up 1% year over year. However, the top line missed the Zacks Consensus Estimate by 3.4%.
Total expenses of $13.15 million declined 5.35% year over year.
Quarterly Segment Details
Adjusted earnings in this segment surged 31% year over year to $653 million, attributable to the impact of U.S. tax reform. Adjusted operating premiums, fees & other revenues came in at $5.7 billion, declining 1% year over year.
Operating earnings of $327 million were up 11% year over year on reported basis, and up 7% on constant currency basis, fueled by volume growth. Operating premiums, fees & other revenues in Asia were up 4% (down 1% on a constant currency basis) to $2.2 billion, driven by transition to fee-based products.
Operating earnings were $140 million, down 2% (down 11% at constant currency) year over year. This downside was due to the negative impact of U.S. tax reform as well as a one-time tax item in Chile. Operating premiums, fees & other revenues were $989 million, up 8% on reported and 2% on constant currency basis.
Operating earnings from EMEA increased 8% (down 5% on constant currency basis) year over year to $81 million. Operating premiums, fees & other revenues were $679 million, up 11% reportedly and 2%, on constant currency basis.
Operating earnings from MetLife Holdings came in at $425 million, up 10% year over year, attributable to U.S. tax reform. Operating premiums, fees & other revenues were $1.3 billion, down 12%, primarily due to Brighthouse separation-related impacts.
Corporate & Other
Corporate & other incurred an operating loss of $203 million, wider than $76 million loss in the prior-year quarter due to the negative impact of U.S. tax reform.
Variable investment income increased to $212 million from $177 million in the year-ago quarter, driven by lower hedge fund income.
Book value per share decreased 14% year over year to $52.49 as of Mar 31, 2018.
Adjusted tangible return on equity expanded 470 basis points to 16.4%.
MetLife carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported first-quarter earnings so far, the bottom line of Radian Group Inc. RDN, The Hartford Financial Services Group, Inc. HIG and MGIC Investment Corporation MTG surpassed the respective Zacks Consensus Estimate.
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