MetLife, Inc.’s (NYSE:MET) third-quarter 2016 earnings of $1.28 per share surpassed the Zacks Consensus Estimate of $1.14. Earnings were up from 62 cents per share reported in the year-ago quarter.
MetLife generated operating revenues of $18.1 billion. The top line surpassed the Zacks Consensus Estimate of $16.93 billion and increased 1% year over year.
MetLife’s premiums, fees and other revenues slipped 1% year over year to $13.1 billion.
During the reported quarter, MetLife’s total expenses increased 8.2% year over year to $17.2 billion.
Segment Details
U.S.
Operating earnings in this segment increased 8% year over year to $552 million. Operating return on allocated equity was 20.4% and operating premiums, fees & other revenues declined 1% to $6.4 billion.
Asia
Operating earnings were down 4% (or 11% on constant currency basis) year over year to $324 million. Operating return on allocated equity was 11.7%. Operating premiums, fees & other revenues in Asia increased 4% (down 9% on a constant currency basis) to $2.2 billion.
LATIN AMERICA
Operating earnings were $133 million, down 27% (23% on a constant currency basis), mainly due to the effects on the year-over-year comparison of a one-time tax benefit of $60 million in the third quarter of 2015. Operating return on allocated equity was 17.3%. Operating premiums, fees & other revenues were $891 million, up 4% (12% on a constant currency basis).
EMEA
Operating earnings from EMEA increased 12% (or 19% on constant currency basis) year over year to $74 million.
In the reported quarter, operating return on allocated equity was 9.2%. Operating premiums, fees & other revenues were $621 million, almost unchanged from the prior-year period and up 3% a constant currency basis, driven by growth in employee benefits and accident & health.
Investment & Financial Update
In the reported quarter, net investment income increased 6% year over year to $5.2 billion. Variable investment income was $409 million, up 53.2% year over year. This increase was driven by the strong performance of private equity and the sale of a real estate joint venture interest.
Operating return on equity increased 11.8% from 6.1% in the year-ago quarter.
METLIFE INC Price, Consensus and EPS Surprise
Zacks Rank
Currently, 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 Multi Line Insurers
The bottom line at Lincoln National Corp. (NYSE:LNC) and CNO Financial Group (NYSE:CNO) beat the respective Zack Consensus Estimate but American International Group Inc. (NYSE:AIG) earnings missed the same for the third quarter.
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