MetLife beats second-quarter profit estimates on investment strength
Reuters
Published Aug 02, 2023 05:39PM ET
(Reuters) - MetLife (NYSE:MET) on Wednesday reported second-quarter profit above expectations as a rally in U.S. markets boosted returns from the insurer's investments.
Wall Street has rebounded this year on hopes that the Federal Reserve could tame sky-high inflation without tipping the economy into a recession, amid hints that the central bank is nearing the end of its fastest tightening cycle since the 1980s.
MetLife's quarterly net investment income surged 42% to $5.07 billion.
The strong report comes a day after peer Prudential Financial (NYSE:PRU) posted a jump in quarterly profit, helped by strength in its U.S. unit.
Adjusted earnings at MetLife's retirement and income solutions unit jumped 11% to $417 million, largely driven by higher recurring interest margins and volume growth.
Adjusted premiums, fees and other revenues, excluding pension risk transfers, rose 6% to $11.57 billion.
The company earned $1.5 billion, or $1.94 per share, excluding one-time costs, in the quarter ended June 30. Analysts had expected a profit of $1.87 per share, according to Refinitiv IBES data.
Total revenues came in at $16.62 billion, compared with $15.47 billion a year earlier.
MetLife's shares were flat in trading after the bell. The stock has lost 13.3% year-to-date, through its previous close.
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Written By: Reuters
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