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MetLife (MET) Q4 Earnings Beat, Revenues Miss Estimates


MetLife, Inc.’s MET fourth-quarter 2017 operating earnings of $1.11 per share beat the Zacks Consensus Estimate by 0.91%. Also, the bottom line increased 3% year over year.

MetLife, Inc. Price, Consensus and EPS Surprise

MetLife, Inc. Price, Consensus and EPS Surprise | MetLife, Inc. Quote

Though performances at U.S., Asia and MetLife Holdings remained soft, strong EMEA and Latin America segments limited the downside.

The company generated operating revenues of $15.8 billion, down 8.2% year over year. Also, the top line missed the Zacks Consensus Estimate by 0.62%.

Full-Year Highlights

MetLife posted net income of $3.38 per share on $62.1 billion revenues. While the bottom line improved nearly six times, the top line rose 2.5% over 2016.

Quarterly Segment Details


Adjusted earnings in this segment declined 3% year over year to $498 million, attributable to increasing certain RIS policy reserves. Operating premiums, fees & other revenues increased 4% to $6 billion.


Operating earnings of $310 million were down 12% year over year on both reported and constant currency basis on higher Japan tax rate. Operating premiums, fees & other revenues in Asia decreased 2% (up 3% on a constant currency basis) to $2.1 billion.

Latin America

Operating earnings were $125 million, up 2% (unchanged on a constant currency basis) year over year. Earnings improved owing to volume growth, partially offset by higher expenses and taxes. Operating premiums, fees & other revenues were $8988 million, up 8% on reported and 5% on constant currency basis.


Operating earnings from EMEA increased 10% (or 5% on constant currency basis) year over year to $79 million due to volume growth in Turkey and Western Europe and lowered expenses. Operating premiums, fees & other revenues were $651 million, up 5% reportedly and 1% on constant currency basis.

MetLife Holdings

Operating earnings from MetLife Holdings came in at $194 million, down 3% year over year, attributable to lower interest margin and the impact of notable adjustments recorded in the current and prior periods. Operating premiums, fees & other revenues were $1.5 billion, down 11%, primarily due to Brighthouse separation-related impacts.

Corporate & Other

Corporate & other incurred an operating loss of $528 million, wider than the loss of $203 million in the prior-year quarter.

Financial Update

Variable investment income decreased to $140 million from $215993 million in the year-ago quarter due to weaker alternative investments performance and lower prepayments.

Book value per share decreased 9.7% year over year to $53.57 per share as of Dec 31, 2017.

Adjusted tangible return on equity expanded 200 basis points to 10.6%.

Zacks Rank

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 multiline insurance industry that have reported fourth-quarter earnings so far, the bottom line of Prudential Financial, Inc. PRU, CNO Financial Group, Inc. CNO and Cigna Corp. CI topped the respective Zacks Consensus Estimate.

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