MetLife Posts Higher Profit In First Quarter
May 1, 2014 by Deon Roberts, The Charlotte Observer
April 30–New York-basedMetLife reported first quarter profit of$1.3 billion, an increase of 36 percent from a year ago, but earnings were weighed down in part by a$60 million accord withNew York authorities.
The largest life insurer in the U.S., whose U.S. retail hub is inCharlotte, said total operating revenues grew 1 percent, to$17 billion, as premium and fee revenue and net investment income were all up. Per share, profit rose 31 percent to$1.14 a share from87 cents.
Earnings were impacted by several items.
Authorities inNew York finedMetLife$60 million in March to settle claims that two subsidiaries solicited insurance business in that state without a license and then misled theNew York State Department of Financial Services about the activities. On Wednesday,MetLife said the settlement reduced its operating earnings by$57 million, or5 cents a share.
MetLife also said its latest quarterly results included an investment loss of$343 million from the previously announced sale of itsU.K. pension risk transfer business.
Also in the quarter, the company posted a$223 million in net derivative gains.MetLife, like other insurers, uses derivatives to hedge risks, such as fluctuations in interest rates.
Last month,MetLife held a ribbon-cutting ceremony for its retail hub inBallantyne Corporate Park.MetLife began hiring for the hub last year, and its plans are to create 1,300 jobs there for an average salary of$58,000.
Operating earnings in itsAmericas retail segment fell 2 percent to$612 million in the quarter from a year ago, primarily because of lower underwriting results, the company said.
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