MetLife Inc.’s first-quarter profit and revenue missed analysts’ estimates as the largest US life insurer grappled with a decline in premiums and fees.
(Bloomberg) — MetLife Inc.’s first-quarter profit and revenue missed analysts’ estimates as the largest US life insurer grappled with a decline in premiums and fees.
- Adjusted earnings fell 30% from a year earlier to $1.18 billion, or $1.52 a share, the New York-based firm said Wednesday in a statement. That missed the $1.81 average estimate of 17 analysts surveyed by Bloomberg. Revenue declined to $16.1 billion.
Key Insights
- Net income plunged to $80 million from $1.63 billion a year earlier
- Premiums, fees and other revenue slumped to $11.5 billion from $12.6 billion
- “While 2023 is shaping up to be another year of uncertainty, the successful actions we’ve taken to focus, simplify and differentiate our business are reflected in this quarter’s strong underlying business fundamentals,” Chief Executive Officer Michel Khalaf said in the statement
- MetLife has been expanding its allocations to private equity investments over the years and shifting out of hedge funds after inflation played havoc with those bets
- In February MetLife Investment Management agreed to acquire Raven Capital Management, an alternative investment firm
- The insurer announced a $3 billion share buyback
Reaction
The shares fell about 1% in extended New York trading after the announcement, and have declined 19% this year.
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