(Reuters) - Insurer MetLife (NYSE:MET) reported a rise in fourth-quarter adjusted profit on Wednesday, bolstered by higher premiums and strong returns from investments.
The insurance industry is typically considered 'recession proof' and enjoys steady demand irrespective of economic conditions as policies are often guaranteed by employers or mandated by the government.
MetLife, however, reported a 63% drop in net income to $574 million in the quarter, primarily due to market risk benefit remeasurement losses of $431 million.
Shares in MetLife were last down 2.9% in extended trading after the results.
Premiums, fees and other revenues for the fourth quarter surged 26% to $13.69 billion.
U.S. equity markets embarked on a strong rally in the last part of 2023, driven by the Federal Reserve's indications of potential interest rate cuts in 2024.
MetLife's net investment income rose 20% to $5.37 billion in the quarter.
On an adjusted basis, excluding total notable items, profit was $1.93 per share for the three months ended Dec. 31, compared with $1.59 a year earlier.