MetLife Announces Second Quarter 2017 Results
Net income includes USD 284 million, after tax, in net derivative losses reflecting changes in foreign currencies, equity markets and interest rates, compared to USD 1.4 billion, after tax, in net derivative losses in the second quarter of 2016. MetLife uses derivatives as part of its broader asset-liability management strategy 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.
Excluding asymmetrical and non-economic accounting impacts of derivatives, investments and other adjustments, second quarter 2017 net income was USD 1.0 billion.
MetLife reported operating earnings of USD 1.4 billion, up 52 percent from the second quarter of 2016, and 54 percent on a constant currency basis. On a per share basis, operating earnings were USD 1.30, up 57 percent from the prior-year quarter.
"We continue to make progress on the transformation of MetLife, delivering strong results globally, including in Group Benefits, Asia, EMEA and Latin America," said Steven A. Kandarian, chairman, president and CEO, MetLife, Inc. "In addition, the Brighthouse Financial spin-off is expected to be completed on August 4 and we remain on track with our plan to return approximately USD 4.5 billion to shareholders this year in dividends and share repurchases." Read the full story