(By Balaseshan) Metlife Inc. (NYSE:MET), the largest life insurer in the United States, reported a surge in quarterly earnings driven by net derivative gains of $1.4 billion.
Profit jumped 111.8% to $2.26 billion for the second quarter. Results included derivative gains largely due to decreases in interest rates and the impact of MetLife's credit spreads during the quarter.
Operating earnings per share (EPS) grew 18% to $1.33 from $1.13, reflecting strong growth in all three geographic regions.
Operating revenue rose 0.9% to $16.79 billion. Analysts had expected a profit of $1.25 per share on revenue of $16.98 billion. Premiums, fees & other revenues marginally declined 0.3% to $11.60 billion.
Premiums, fees & other revenues for the Americas were down slightly at $8.4 billion, largely due to a decline in pension closeout sales, which often fluctuate significantly from quarter to quarter.
Premiums, fees & other revenues in Asia increased 6% to $2.3 billion, due to business growth in Japan and Australia. Total sales for the region climbed 14%, driven by increases in Japan, China and Australia.
Premiums, fees & other revenues in Europe, the Middle East and Africa (EMEA) declined 4% $815 million but up 3% on a constant currency basis. Total sales for the region increased 13% despite the challenging economic environment in Europe. Turkey, Russia and the Gulf countries contributed to the sales growth in the quarter.
Net investment income increased 4% to $5.2 billion, driven by solid recurring income, while variable investment income was above the plan range at $371 million, up from $273 million last year.
MET closed Wednesday's regular session down 1.10% at $30.43. The stock has been trading between $25.61 and $40.75 for the past 52 weeks.