MetLife, Inc.’s MET first-quarter 2019 operating earnings of $1.48 per share beat the Zacks Consensus Estimate by 13.9%. The bottom line also rose 8.8% year over year. Earnings gained from an increase in revenues, partly offset by rise in expenses.
Behind the Headlines
The company generated operating revenues of $15.45 billion, up 2% year over year. However, the top line missed the Zacks Consensus Estimate by 4.8%.
Adjusted premiums, fees & other revenues of $11.2 billion increased 4% year over year. Net investment income of $4.91 billion increased 31% year over year.
Total expenses of $14.6 million were up 10.7% year over year owing to higher policyholder benefits and claims, and interest credited to policyholders’ accounts.
Book value per share, excluding accumulated other comprehensive income (AOCI), other than foreign currency translation adjustments (FCTA) was $45.58 per share, up 5% year over year.
MetLife, Inc. Price, Consensus and EPS Surprise
MetLife, Inc. Price, Consensus and EPS Surprise | MetLife, Inc. Quote
Quarterly Segment Details
Adjusted earnings in this segment increased 11% year over year to $724 million, driven by favorable underwriting and volume growth, partially offset by lower investment margins. Adjusted premiums, fees & other revenues were $6.1 billion, up 7%.
Operating earnings of $356 million increased 9% (13% on constant currency basis) year over year, driven by volume growth. Adjusted premiums, fees & other revenues were $2.1 billion, down 2% (up 1% on constant currency basis).
Operating earnings were $134 million, down 4% (down 1% at constant currency) year over year, due to higher expenses and unfavorable underwriting, which was to some extent offset by favorable investment returns.
Adjusted premiums, fees & other revenues were $942 million, down 5% (up 4% at constant currency).
Operating earnings from EMEA increased 6% (up 23% on constant currency basis) year over year to $86 million, driven by favorable underwriting and volume growth.
Adjusted premiums, fees & other revenues were $659 million, down 3% year over year but up 5% at constant currency.
Adjusted operating earnings from MetLife Holdings came in at $317 million, down 25% year over year.
Operating premiums, fees & other revenues were $1.27 billion, down 5% year over year.
Zacks Rank & Other Releases
MetLife has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Torchmark Corporation TMK, RLI Corporation RLI and W.R. Berkley Corp. WRB beat the Zacks Consensus Estimate by 3.14%, 20.3% and 54%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Torchmark Corporation (TMK) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
RLI Corp. (RLI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research