MetLife profit falls on derivative losses; operating profit beats
February 14, 2013 9:56 AM EST
MetLife, like its peers, is heavily exposed to the persistently low interest rate environment. But the company has long had a substantial derivatives program designed to smooth out that risk.
But higher interest rates, foreign currency changes and impact of the company's credit spreads resulted in derivative net losses of $924 million, after tax, in the quarter. The company recorded derivative net gains of $351 million in the year earlier quarter.
The company's net income fell to $96 million, or 9 cents per share, in the fourth quarter, from $959 million, or 90 cents per share, a year earlier.
Operating profit was $1.25 per share.
Analysts on average had expected earnings of $1.18 per share, according to Thomson Reuters I/B/E/S.
MetLife shares closed at $37.50 on the New York Stock Exchange on Wednesday. They have gained 16 percent in the last three months, outperforming the 13 percent rise in Dow Jones U.S. Insurance Index <.DJUSIR> during the same period.
(Reporting by Aman Shah in Bangalore; Editing by Sriraj Kalluvila)
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