MetLife moves past worst of pandemic as investment gains drive profit beat By Reuters

© Reuters. FILE PHOTO: A statue stands atop Grand Central Station in front of the MetLife building in New York, October 8, 2008. REUTERS/Lucas Jackson

(Reuters) – MetLife Inc (NYSE:) said on Wednesday the worst of the pandemic was behind it after the U.S. insurer beat Wall Street estimates for first-quarter profit, with large investment gains cushioning the hit from coronavirus-related claims.

The New York-based insurer’s net investment income jumped nearly 74% to $5.31 billion on strong returns from private-equity investments.

MetLife saw rising payouts from deaths related to COVID-19, especially in the United States and Latin America. But those were offset by lower costs from annuities and long-term care policies, also linked to coronavirus-related deaths.

Global life insurers are taking steps to curb payouts stemming from the health crisis, including for long-term health consequences that are not yet fully understood.

“We believe the worst impact of the pandemic on our business performance is behind us, and we are well-positioned to create additional value for our stakeholders in the future,” Chief Executive Officer Michel Khalaf said in a statement.

Rival Prudential Financial Inc (NYSE:) on Tuesday posted profits that topped analysts’ estimates by nearly 50% for the first quarter, boosted by record results in its asset management and retirement business.

MetLife said it booked $2.24 billion in losses on its hedging strategy, which is designed to offset the hit from declining interest rates. The benchmark rose nearly 83 basis points to 1.7460% in the first quarter.

The company reported adjusted earnings of $2 billion, or $2.20 per share, for the first quarter ended March 31, from $1.45 billion, or $1.58 per share, a year earlier.

Analysts on average had expected a profit of $1.53 per share, according to IBES data from Refinitiv.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button