First quarter 2015 operating earnings included the following item:
• Unfavorable catastrophe experience partially offset by favorable prior year development, which resulted in a decrease in operating earnings of USD 16 million, or USD 0.01 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 11.7 percent for the first quarter of 2015 and the company's tangible operating ROE was 14.4 percent.
On a GAAP basis, MetLife reported first quarter 2015 net income of USD 2.1 billion, or USD 1.87 per share. Net income includes USD 534 million, after tax, in net derivative gains, reflecting the weakening of foreign currencies against the dollar and lower interest rates. 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.
Premiums, fees & other revenues were USD 12.1 billion, essentially unchanged from the first quarter of 2014 (up 4 percent on a constant currency basis).
Book value, excluding AOCI other than FCTA, was USD 50.45 per share, up 6 percent from USD 47.70 per share at March 31, 2014.
"MetLife had a good first quarter," said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. "While the continued strengthening of the U.S. dollar impacted reported earnings, our businesses had solid underlying growth. We are pleased with the success of our strategy to grow capital efficient, protection oriented products. For example, accident and health sales outside of the U.S. increased 24 percent and voluntary product sales in the U.S. grew 57 percent." Read the full story
MetLife announces first quarter 2015 results