MetLife, Inc. (MET) has reported a 52.04 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $577 million, or $0.51 a share in the quarter, compared with $1,203 million, or $1.06 a share for the same period last year.
Revenue during the quarter went down marginally by 1.71 percent to $17,723 million from $18,031 million in the previous year period. Net premium earned for the quarter was almost stable at $10,391 million, when compared with the previous year period.
Total expenses move up
Benefits, losses and expenses for the quarter were at $17,175 million, or 165.29 percent of premium earned from $15,868 million or 152.94 percent of premium earned in the last year period. Operating income for the quarter was $548 million, compared with $2,163 million in the previous year period. Net investment income was at $5,464 million for the quarter, up 38.01 percent or $1,505 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved down marginally by 2.13 percent or $50 million to $2,296 million. The company has recorded a gain on investments of $257 million in the quarter compared with a gain of $382 million for the previous year period.
MetLife had a solid third quarter of 2016 on an operating basis, driven primarily by improved market conditions and strong expense discipline," said Steven A. Kandarian, chairman, president and chief executive officer, MetLife, Inc. “We continue to focus on long-term shareholder value by generating more predictable and higher free cash flow. Through our Accelerating Value initiative, we have been directing capital to businesses with strong risk-adjusted returns, low capital intensity and timely cash payback."
Assets outpace liabilities growth
Total assets increased 7.98 percent or $70,444 million to $952,904 million on Sep. 30, 2016. On the other hand, total liabilities were at $874,438 million as on Sep. 30, 2016, up 7.77 percent or $63,045 million from year-ago. Return on assets stood at 0.09 percent in the quarter, down 0.08 from 0.17 percent in the last year period. At the same time, return on equity was at 0.73 percent in the quarter, down 0.96 from 1.69 percent in the last year period.
Investments move up
Investments stood at $548,791 million as on Sep. 30, 2016, up 9.41 percent or $47,214 million from year-ago. Meanwhile, yield on investments went up 21 basis points to 1 percent in the quarter. Total debt was at $24,006 million as on Sep. 30, 2016, down 0.81 percent or $195 million from year-ago. Shareholders equity stood at $78,466 million as on Sep. 30, 2016, up 10.53 percent or $7,478 million from year-ago. As a result, debt to equity ratio went down 3 basis points to 0.31 percent in the quarter from 0.34 percent in the last year period.
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