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MetLife (MET) Q1 Earnings Top Estimates, Revenues Rise Y/Y

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MetLife, Inc.’s (MET - Free Report) first-quarter 2018 operating earnings of $1.36 per share beat the Zacks Consensus Estimate of $1.17 by 16.2%. However, the bottom line declined nearly 7% year over year.

MetLife, Inc. Price, Consensus and EPS Surprise

 

The reported quarter benefited from favorable underwriting, volume growth and a favorable positive impact of the tax reform.

The company generated operating revenues of $15.148 billion, up 1% year over year. However, the top line missed the Zacks Consensus Estimate by 3.4%.

Total expenses of $13.15 million declined 5.35% year over year.

Quarterly Segment Details

U.S.

Adjusted earnings in this segment surged 31% year over year to $653 million, attributable to the impact of U.S. tax reform. Adjusted operating premiums, fees & other revenues came in at $5.7 billion, declining 1% year over year.

Asia

Operating earnings of $327 million were up 11% year over year on reported basis, and up 7% on constant currency basis, fueled by volume growth. Operating premiums, fees & other revenues in Asia were up 4% (down 1% on a constant currency basis) to $2.2 billion, driven by transition to fee-based products.

Latin America

Operating earnings were $140 million, down 2% (down 11% at constant currency) year over year. This downside was due to the negative impact of U.S. tax reform as well as a one-time tax item in Chile. Operating premiums, fees & other revenues were $989 million, up 8% on reported and 2% on constant currency basis.

EMEA

Operating earnings from EMEA increased 8% (down 5% on constant currency basis) year over year to $81 million. Operating premiums, fees & other revenues were $679 million, up 11% reportedly and 2%, on constant currency basis.

MetLife Holdings

Operating earnings from MetLife Holdings came in at $425 million, up 10% year over year, attributable to U.S. tax reform. Operating premiums, fees & other revenues were $1.3 billion, down 12%, primarily due to Brighthouse separation-related impacts.

Corporate & Other

Corporate & other incurred an operating loss of $203 million, wider than $76 million loss in the prior-year quarter due to the negative impact of U.S. tax reform.

Financial Update

Variable investment income increased to $212 million from $177 million in the year-ago quarter, driven by lower hedge fund income.

Book value per share decreased 14% year over year to $52.49 as of Mar 31, 2018.

Adjusted tangible return on equity expanded 470 basis points to 16.4%.

Zacks Rank

MetLife carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Among other players from the insurance industry having reported first-quarter earnings so far, the bottom line of Radian Group Inc. (RDN - Free Report) , The Hartford Financial Services Group, Inc. (HIG - Free Report) and MGIC Investment Corporation (MTG - Free Report) surpassed the respective Zacks Consensus Estimate.

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