Metlife announces fourth quarter and full year 2014 results

12 February 2015 —
Fourth Quarter Results

MetLife reported operating earnings of USD 1.6 billion, up 2 percent over the fourth quarter of 2013. On a per share basis, operating earnings were USD 1.38, up 1 percent over the prior year quarter. Operating earnings in the Americas grew 4 percent on a reported basis and 6 percent on a constant currency basis. Operating earnings in Asia increased 3 percent on a reported basis and 9 percent on a constant currency basis. Operating earnings in Europe, the Middle East and Africa (EMEA) decreased 4 percent on a reported basis but increased 9 percent on a constant currency basis.

Fourth quarter 2014 operating earnings included the following items:
  • a previously announced increase in asbestos legal reserves, which decreased operating earnings by USD 117 million, or USD 0.10 per share, after tax
  • tax adjustments in Latin America and EMEA, which increased operating earnings by USD 27 million, or USD 0.02 per share, after tax
  • favorable catastrophe experience and prior year development, which increased operating earnings by USD 16 million, or USD 0.01 per share, after tax
  • certain insurance adjustments in the Americas and an actuarial update in Asia, which increased operating earnings by USD 5 million, after tax

MetLife's operating return on equity (ROE), excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), was 11.3 percent for the fourth quarter and the company's tangible operating ROE was 14.1 percent.

On a GAAP basis, MetLife reported fourth quarter 2014 net income of USD 1.5 billion, or USD 1.30 per share. Net income includes USD 120 million, after tax, in net derivative gains, reflecting falling interest rates and the weakening of foreign currencies against the dollar. 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 13.1 billion, essentially unchanged from the fourth quarter of 2013 and up 3 percent on a constant currency basis from the fourth quarter of 2013.

Book value, excluding AOCI other than FCTA, was USD 49.53 per share, up 5 percent from USD 47.01 per share at December 31, 2013.

Full Year Results

For the full year 2014, MetLife reported operating earnings of USD 6.6 billion, up 5 percent over 2013. The increase reflects operating earnings growth of 7 percent in the Americas (8 percent on a constant currency basis), 4 percent in Asia (8 percent on a constant currency basis) and 10 percent in EMEA (16 percent on a constant currency basis). On a per share basis, 2014 operating earnings were USD 5.74, up 2 percent over 2013.

MetLife reported full year 2014 net income of USD 6.2 billion, or USD 5.42 per share.

"Our full-year 2014 results demonstrated solid growth across all of our regions," said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. "MetLife continues to run its business to create long-term shareholder value. Our operating earnings per share have grown at a compound annual rate of 9.6 percent from 2011 through 2014, and our full-year 2014 operating return on equity reached 12 percent for the second year in a row."

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Metlife announces fourth quarter and full year 2014 results
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