– Operating Earnings of $1.4 Billion, or $1.33 Per Share, up 18% from 2Q 2011 –
– Net Income of $2.3 Billion, or $2.12 Per Share, Including Derivative Gains Due to Lower Interest Rates & Impact of MetLife’s Credit Spreads –
– Book Value Excluding Accumulated Other Comprehensive Income Grows 12% Over 2Q 2011 to $48.60 Per Share –
NEW YORK--(BUSINESS WIRE)--Aug. 1, 2012-- MetLife, Inc. (NYSE: MET) today reported second quarter 2012 net income of $2.3 billion, or $2.12 per share, and operating earnings1 of $1.4 billion, or $1.33 per share.
“MetLife continued to perform well in the second quarter particularly given the current environment,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. “Our story is clear – consistent execution on the fundamentals of the business. Our underwriting discipline is paying off, our investment income and core spreads are healthy, and we’re successfully managing through the low-interest-rate environment.”
Net income included net derivative gains of $1.4 billion, after tax, largely due to decreases in interest rates and the impact of MetLife’s credit spreads during the quarter. As part of its broader asset-liability management strategy, MetLife uses derivatives 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. Also, derivative gains or losses related to MetLife’s credit spreads do not have an economic impact on the company.
1 Information regarding the non-GAAP financial measures included in this press release and the reconciliation of the historical non-GAAP financial measures to GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this release and/or the Second Quarter 2012 Financial Supplement.
SUMMARY • Second quarter 2012 operating earnings of $1.4 billion, or $1.33 per share, up 18% over the second quarter of 2011 driven by all three geographic regions • Book value excluding accumulated other comprehensive income of $48.60 per share, up 12% over the second quarter of 2011 • Net investment income of $5.2 billion, up 4% over the second quarter of 2011 and reflecting: ◦ solid recurring income, which drove strong investment spreads, and ◦ variable investment income above the plan range by $79 million, or $0.07 per share, after tax and the impact of deferred acquisition costs (“DAC”)