MetLife has announced an excellent second quarter. Premiums, fees and other income were USD 13.7 billion, up 7% compared with the prioryear quarter. Adjusted premiums, fees and other revenues, excluding pension risk transfers, were USD 13.0 billion, up 5%, the company said on its website.

Net investment income was USD 6.7 billion, up 18%, primarily due to increases in the estimated fair value of certain securities that do not qualify as separate accounts under GAAP. Adjusted net investment income was USD 5.6 billion, up 7%, reflecting asset growth and investing in a higher-rate environment.

Net investment losses were USD 338 million after tax, reflecting normal trading activity and a stable credit environment. Net derivative losses amounted to USD 610 million after tax, driven by stronger equity markets, higher long-term interest rates, and strengthening of the U.S. dollar.

Net income was USD 705 million, reflecting higher adjusted earnings, partially offset by certain investment-related items. On a per-share basis, net income increased 6% to USD 1.09.

Adjusted earnings were USD 1.6 billion, up 15% on a reported basis and 14% on a constant currency basis, driven by favorable underwriting and broad-based volume growth. On a per-share basis, adjusted earnings were USD 2.43, up 20%.

Direct expense ratio, excluding total notable items related to direct expenses and PRT, was 12.1%, compared to 11.7% in the prior-year quarter, and on track for our yearly target.

The report key takeaways:

• Net income increased 1% to USD 705 million, or USD 1.09 per share.
• Adjusted earnings increased 15% to USD 1.6 billion, driven by favorable underwriting and volume growth.
• Adjusted earnings per share increased 20% to USD 2.43.
• Premiums, fees and other revenues (PFOs) increased 7% to USD 13.7 billion.
• Adjusted PFOs, excluding pension risk transfers (PRT), increased 5% to USD 13.0 billion, with widespread growth across every operating segment.
• Net investment income up 18% to USD 6.7 billion.
• Book value per share (BVPS) up 8% to USD 38.59, adjusted BVPS up 3% to USD 57.71.
• Returned over USD 1.1 billion to shareholders via share repurchases and common stock dividends.
• Holding company cash and liquid assets totaled USD 3.4 billion at quarter end, within our target range.
• Adjusted return on equity of 17% for the second straight quarter, at the top of our range.
• Group Benefits adjusted earnings up 25% to USD 503 million.
• Retirement and Income Solutions adjusted earnings up 2% to USD 377 million.
• Asia adjusted earnings up 21% to USD 420 million.
• Latin America adjusted earnings up 15% to USD 268 million.
• EMEA adjusted earnings up 8% to USD 108 million.
• MetLife Investment Management adjusted earnings up 6% to USD 57 million.

“MetLife delivered an excellent second quarter. Adjusted earnings per share rose 20%, powered by strong underwriting and broad volume growth”, said Michel Khalaf, President and Chief Executive Officer. “Our New Frontier strategy is working. Disciplined execution is driving balanced growth and generating attractive returns, with adjusted return on equity at 17 percent year-to-date”, the CEO added. “Our scale, diversification and financial strength set MetLife apart, and this quarter further reinforces our ability to create value for shareholders across cycles, while keeping customers at the center of everything we do”, Michel Khalaf concluded.



The full report can be found here.