MetLife profit falls 33% as market turmoil hits investment income
Reuters
Published Feb 01, 2023 04:24PM ET
Updated Feb 01, 2023 04:39PM ET
(Reuters) -MetLife Inc reported a 33% drop in fourth-quarter adjusted profit on Wednesday as a global market rout hurt the U.S. insurer's investment returns.
Lower private equity returns sent MetLife (NYSE:MET)'s net investment income down 15% to $4.5 billion in the final quarter of a year that saw rising interest rates and growing recession risks pummel global markets across asset classes.
Shares of the insurer fell 2% in extended trading following the results.
Adjusted premiums, fees and other revenues - excluding pension risk transfers (PRT) - decreased 1% to $11.4 billion.
Still, improving underwriting trends in the United States, Europe and Latin America, alongside lower COVID-19 life insurance claims, partially offset the hit to its investment income.
U.S. adjusted earnings climbed 20% in the quarter, while Latin America and EMEA jumped 45% and 67%, respectively, on a reported basis.
The company posted adjusted profit of $1.2 billion, or $1.55 per share, for the three months ended Dec. 31, compared with $1.8 billion, or $2.17 per share, a year earlier.
Analysts on average had expected $1.65 per share, according to IBES data from Refinitiv.
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Written By: Reuters
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