MetLife's 1Q profit shrinks 37 percent on investment losses
NEW YORK—MetLife Inc.'s profit shrank 37 percent in the first quarter as turbulent markets and the plummeting dollar pummeled the insurer's investment portfolio, the company said Thursday.
MetLife earned $615 million, or 84 cents per share, in the first quarter, compared with profit of $983 million, or $1.28 per share, in the first quarter last year.
During a rough first quarter for stock and bond markets, the New York-based insurer's investment portfolio lost $560 million. Bad credit, the plunge of the dollar and a drop in interest rates hobbled the insurer's investments.
Like most insurers, MetLife emphasizes operating income because it excludes certain costs -- including investment losses -- that insurers do not consider reflective of trends in their business.
Operating income jumped 3 percent to $1.11 billion, or $1.52 per share. Analysts surveyed by Thomson Financial forecast operating profit of $1.48 per share.
The insurer's premiums and fees grew 12 percent to $9.4 billion, which Chief Executive C. Robert Henrikson credited to the diversify of MetLife's business.
The company sold more retirement and savings products, fueling a 23 percent acceleration in profit in the institutional business to $558 million.
In the individual business, the 10 percent decline in the stock market chewed into sales of variable annuities. The segment's profit slipped 2 percent to $312 million.
The car and home insurance division's profit compressed 8 percent to $98 million because of more claims from insured damage.
The international insurance segment's profit leaped 10 percent to $137 million because of growth in Latin America.
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