MetLife, Inc (MET) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2,088 million, or $ 1.94 a share in the quarter, against a net profit of $834 million, or $0.70 a share in the last year period. Revenue during the quarter dropped 29.15 percent to $12,076 million from $17,044 million in the previous year period. Net premium earned for the quarter was almost stable at $9,652 million, when compared with the previous year period.
Total expenses come down marginally
Benefits, losses and expenses for the quarter were at $15,641 million, or 162.05 percent of premium earned from $15,909 million or 165.63 percent of premium earned in the last year period. Operating loss for the quarter was $3,565 million, compared with an operating income of $1,135 million in the previous year period. Net investment income was at $5,037 million for the quarter, up 2.50 percent or $123 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved down marginally by 2.27 percent or $53 million to $2,280 million. The company has booked a loss on investments of $367 million in the quarter compared with a gain of $62 million for the previous year period.
“While rising interest rates are good for MetLife’s businesses, they reduced the carrying value of our derivatives book and produced a quarterly net loss on a GAAP basis,” said Steven A. Kandarian, chairman, president and Chief executive officer, MetLife, Inc. “For full-year 2016 excluding notable items, market factors and underwriting reduced earnings while management actions to control expenses and generate volume growth were positive. Share repurchases had a positive impact on earnings per share, and underlying free cash flow improved significantly as a result of our value-creation efforts. The prospect of higher interest rates and a more favorable regulatory environment, together with our new enterprise strategy, capital management and expense discipline, position us for value creation for both our customers and our shareholders.”
Liabilities outpace assets growth
Total assets increased 2.37 percent or $20,831 million to $898,764 million on Dec. 31, 2016. On the other hand, total liabilities were at $831,284 million as on Dec. 31, 2016, up 2.70 percent or $21,847 million from year-ago. Return on assets was negative at 0.20 percent in the quarter against a positive 0.13 percent in the last year period. Return on equity was negative at 3.16 percent in the quarter against a positive 1.15 percent in the last year period.
Investments move up marginally
Investments stood at $500,393 million as on Dec. 31, 2016, up 1 percent or $4,934 million from year-ago. Meanwhile, yield on investments went up 1 basis points to 1.01 percent in the quarter. Total debt was at $23,984 million as on Dec. 31, 2016, down 5.78 percent or $1,472 million from year-ago. Shareholders equity stood at $67,480 million as on Dec. 31, 2016, down 1.37 percent or $939 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.36 percent in the quarter from 0.37 percent in the last year period.
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