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)
Most Popular Slideshows
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- NFL Recap: New York Giants 45, Washington Redskins 14 [PHOTOS]
- Photos Of George Clooney And Amal Alamuddin, They Get Married Again On Monday [Slideshow]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- Google HTC Nexus 9 Tablet October 24 Launch Date Benefits Many
- Galaxy Note 4 vs Nexus 6: Which Smartphone Dominates
- MH 370 Search In Ocean To Intensify With Hi Tech Ships Joining The Plane Hunt From October
- Nexus 7 Tips and Tricks
- New Windows OS Is Not Windows 9, Microsoft To Launch Windows 10 As New OS Build