On November 1, 2023, MetLife Inc (MET, Financial) released its third quarter 2023 earnings report. The company reported a net income of $422 million, or $0.56 per share, a significant decrease from the net income of $1.1 billion, or $1.37 per share, in the third quarter of 2022. However, adjusted earnings saw a rise of 35% to $1.5 billion, or $1.97 per share, compared to adjusted earnings of $1.1 billion, or $1.37 per share, in the same period last year.
Financial Highlights
MetLife's book value per share declined by 10% to $29.34 from $32.48 at the end of September 2022. The company's return on equity (ROE) was reported at 7.0%. Adjusted ROE, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), stood at 14.9%. The company held cash and liquid assets of $4.9 billion at the end of September 2023, which is above the target cash buffer of $3.0 - $4.0 billion.
Revenue and Earnings Summary
MetLife reported third quarter 2023 premiums, fees and other revenues of $13.2 billion, down 32% compared to the third quarter of 2022. Net investment income was $4.8 billion, up 35% from the third quarter of 2022. Net investment losses were $927 million, primarily driven by certain required accounting adjustments associated with the pending reinsurance transaction with Global Atlantic Financial Group. Net derivative losses amounted to $1.2 billion, primarily driven by higher interest rates and changes in currency rates.
Segment Performance
Adjusted earnings for the U.S. segment rose by 30%, Asia by 3%, Latin America by 25%, and Europe, the Middle East and Africa (EMEA) by 38%. MetLife Holdings reported a 78% increase in adjusted earnings. The company's Corporate & Other segment reported an adjusted loss of $262 million.
CEO's Commentary
In the third quarter, MetLife delivered strong underlying results that affirm our business momentum and our financial strength," said MetLife President and CEO Michel Khalaf. "Our unyielding focus on execution positions us to effectively navigate the current environment while creating long-term value for our shareholders and other stakeholders.”
Looking Ahead
Despite the decrease in net income, the rise in adjusted earnings indicates a positive trajectory for MetLife Inc (MET, Financial). The company's focus on execution and navigating the current environment is expected to continue driving its business momentum and financial strength.
Explore the complete 8-K earnings release (here) from MetLife Inc for further details.
