- Premiums, fees and other revenues: USD 10,491 million (-13%)
- Adjusted premiums, fees and other revenues: USD 10,401 million (-13%), of which:
- US: USD 5,692 million (-15%)
- Asia: USD 2,018 million (-2%)
- Latin America: USD 737 million (-31%)
- EMEA: USD 660 million (-1%)
- Holdings: USD 1,208 million (-5%)
- Adjusted earnings: USD 1,208 million (-5%)
- Expense ratio: 21.0% (+0.7 pp.)
- RoE: 0.4% (-11.2 pp.)
- Net income: USD 68 million (-96%)
Net investment income was USD 4.1 billion, down 13% from the second quarter of 2019. Adjusted net investment income was USD 3.4 billion, down 24% from the prior-year period. The decline in net investment income was primarily driven by a loss in variable investment income, which reflects a one quarter reporting lag for private equity results.
Net derivative losses amounted to USD 710 million, or USD 561 million after tax during the quarter, driven by stronger equity markets and higher longer-term interest rates.
MetLife reported adjusted earnings of USD 758 million, down 43%, and down 41% on a constant currency basis, from the second quarter of 2019. On a per share basis, adjusted earnings were USD 0.83, down 40% from the prior-year period.
Book value was USD 78.65 per share, up 22% from USD 64.61 per share at June 30, 2019. Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of USD 52.27 per share, up 11% from USD 47.09 per share at June 30, 2019.
Return on equity (ROE) was 0.4%. Adjusted ROE, excluding AOCI other than FCTA, was 6.4%. Holding company cash and liquid assets amounted USD 6.6 billion at June 30, 2020, which is above the group's target cash buffer of USD 3.0 - 4.0 billion.
"MetLife delivered solid underlying business performance in the second quarter. The decline in our private equity portfolio was squarely within our expectations. On underwriting, our well-diversified set of businesses provided meaningful offsets to increased claims from COVID-19. The quarter also demonstrated our ongoing commitment to consistent execution, which was evident in our strong cash generation and expense discipline.
During these extraordinarily challenging times, our people remain committed to keeping our promises and fulfilling our obligations - to our customers, who are counting on us to be there for them; to our shareholders, who are depending on us to create long-term value; and to our communities, who are looking to us to help build a more secure, stable and equitable future."