MetLife Returns to Third-Quarter Profit
November 1, 2013 by Fran Lysiak
NEW YORK – MetLife Inc. swung to third-quarter profit, compared with a $984 million net loss the same period a year ago.
Net income for MetLife (NYSE: MET) was $942 million, MetLife said in a statement. Operating earnings included results of an annual actuarial assumption review, which boosted operating earnings by $28 million as well as favorable catastrophe experience and prior-year loss reserve development, which increased operating earnings by $21 million.
Net income, however, included $355 million in net derivative losses, after tax. Increases in interest rates, changes in foreign currencies and the impact of MetLife’s own credit contributed to the derivative losses. MetLife uses derivatives as part of its broader strategy to hedge certain risks, such as movements in interest rates and foreign currencies.
Premiums, fees and other revenues rose 3% to $11.9 billion.
Metropolitan Life Insurance Co. currently has a Best’s Financial Strength Rating of A+ (Superior).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
