Second quarter 2015 operating earnings included the following item:
• a one-time tax rate change in Japan, which increased operating earnings by USD 61 million, or USD 0.05 per share, after tax
MetLife's operating return on equity (ROE), excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), was 12.5 percent for the second quarter of 2015, and the company's tangible operating ROE was 15.3 percent.
On a GAAP basis, MetLife reported second quarter 2015 net income of USD 1.0 billion, or USD 0.92 per share. Net income includes USD 593 million, after tax, in net derivative losses, mainly due to rising interest rates, as well as weakening of the U.S. dollar against certain currencies. 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.
The second quarter variance between operating earnings and net income reflects asymmetrical and non-economic accounting of USD 856 million, after tax. Net income adjusted for asymmetrical and non-economic accounting was above operating earnings primarily due to the portion of the one-time tax benefit in Japan relating to net investment gains.
Premiums, fees & other revenues were USD 12.2 billion, down 4 percent (essentially unchanged on a constant currency basis) over the second quarter of 2014.
Book value, excluding AOCI other than FCTA, was USD 50.73 per share, up 4 percent from USD 48.60 at June 30, 2014.
"MetLife delivered strong double-digit operating earnings growth in the second quarter," said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. "Investment margins remained healthy despite persistent low interest rates, and underwriting margins improved year over year for the fourth consecutive quarter."
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MetLife Announces Second Quarter 2015 Results