MetLife Announces First Quarter 2017 Results

4 May 2017 —
On a GAAP basis, MetLife reported first quarter 2017 net income of USD 820 million, compared to net income of USD 2.2 billion in the first quarter of 2016. On a per share basis, net income was USD 0.75, compared to net income of USD 1.98 per share in the prior-year period.

Net income includes USD 602 million, after tax, in net derivative losses reflecting changes in equity markets and interest rates, compared to USD 868 million, after tax, in net derivative gains in the first quarter of 2016. MetLife uses derivatives as part of its broader asset-liability management strategy to hedge certain risks, such as movements in interest rates and foreign currencies. This hedging activity often generates derivative gains or losses and creates fluctuations in net income because the risk being hedged may not have the same GAAP accounting treatment.

In the quarter, rising equity markets and costs associated with repositioning our hedging strategies contributed to the net derivative losses. Approximately 67 percent of the net derivative losses in the quarter were attributable to asymmetrical and non-economic accounting. Excluding asymmetrical and non-economic accounting impacts, first quarter 2017 net income was USD 1.3 billion. Read the full story

MetLife Announces First Quarter 2017 Results
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