MetLife Earnings Rise as Group Benefits Accelerates
Net investment income climbed 18% to $6.702 billion in the second quarter.
MetLife Inc. (MET), the insurer, reported a 15% increase in second-quarter adjusted earnings to $1.573 billion, led by stronger Group Benefits results.
The gain marked a modest slowdown from 18% growth in the first quarter, while adjusted earnings were nearly unchanged sequentially. Adjusted earnings per share rose 20% to $2.43 a share after increasing 23% in the prior quarter.
Premiums, fees and other revenues increased 7% to $13.652 billion, accelerating from 5% growth in the first quarter. Excluding pension risk transfers, adjusted premiums, fees and other revenues rose 5%, easing from 10% growth in the prior quarter.
Net income rose 1% from a year earlier to $705 million and fell 38% from the first quarter. Diluted net income per share declined sequentially to $1.09 from $1.74.
Adjusted net investment income increased 7% to $5.551 billion as asset growth and investments made in a higher-rate environment supported returns. Variable investment income rose 18% to $231 million, less than half the first quarter’s level.
Group Benefits adjusted earnings climbed 25% to $503 million, accelerating from 19% growth in the first quarter, as year-to-date sales rose 9%. Retirement and Income Solutions earnings grew 2% to $377 million, while adjusted premiums, fees and other revenues excluding pension risk transfers rose 19% on U.K. longevity reinsurance and structured-settlement sales.
Asia adjusted earnings increased 25% in constant currency to $420 million, supported by a 17% increase in sales. Latin America earnings rose 4% in constant currency, and EMEA earnings increased 11% on the same basis as higher expenses partly offset volume growth.
Expense ratios moved higher, with the direct expense ratio excluding notable items and pension risk transfers rising to 12.1% from 11.9% in the first quarter. MetLife returned more than $1.1 billion through share repurchases and dividends for a second consecutive quarter, while holding-company cash declined to $3.4 billion and remained within its target range.