Metlife Inc. (NYSE: MET)
Metlife shares sunk more than 2% late yesterday after the company reported its adjusted 4Q per share earnings that were below what analysts had been expecting.
The company said it earned a $1.97 a share, or$2.1 billion in the quarter, versus a loss $2.03 a share, or of $2.2 billion in the previous financial period. Net income includes a $1.21 billion charge related to the American tax overhaul, and a $70.1 million, after tax, policy reserves charge.
MET Earnings & Outlook
The company earned 64 cents a share, or $678 million, adjusted for one time earnings, compared with 94 cents a share last year. Revenue climbed to $15.74 billion, from $12.61 billion in the previous year.
Analysts had expected adjusted earnings of $1.09 per share on revenue of $15.53 billion. In January, the company put its earnings report on hold and said it would go adjust its previous quarterly earnings due to some pension benefits it had not paid out.
On Tuesday, Metlife CEO said the company’s internal failures that caused it not to make payments to hundreds of pensioners dated back 25 years ago. He added that the insurer would take a huge effort this financial year to solve the problems.
“We are taking the right steps to come up with a solution to the situation and we will continue dedicating ourselves to doing better.” John Hele, the company chief financial officer, said in a video presented to investors yesterday.
Metlife Inc. was founded in 1999 and has its headquarters in New York, US. MetLife provides financial and insurance services to institutional and individual customers. It offers annuities, life insurance, homeowner and automobile’s insurance, individual retail banking services as well as group reinsurance, insurance and savings and retirement products and services.
The company runs its operations through six segments: Group, Retail, Corporate Benefit Funding, Worksite and Voluntary Benefits, Latin America, Europe, Asia, and Africa and the Middle East.
The Retail segment is organized into two businesses: Annuities, and Life and Other. The products of Life and Other include universal life, whole life, variable life, term life, disability, casualty and property. The Annuities business provides a variety of fixed and variable annuities that are mainly sold to tax-qualified groups and individuals in the healthcare, education, and nonprofit sectors.
The Group, Worksite and Voluntary Benefits segment is structured into two businesses: Voluntary and Worksite, and Group. The Group insurance services and products include dental, life, group long- and short-term disability and dismemberment, accidental and death coverage. On the Voluntary and Worksite services and products include prepaid legal plans, critical illness, long-term care, casualty and property products.
The segment of Corporate Benefit Funding provides financing and funding solutions that assist institutional customers manage and mitigate liabilities commonly associated with their nonqualified, qualified and welfare employee-benefit programs through a spectrum of annuity and life-based investment and insurance products.
The Asia segment specializes in the accident, life insurance, and retirement, health insurance and credit insurance and savings products. The Middle East, Africa and Europe segment operates across 31 nations, and engages in the health insurance, life insurance, accident, retirement, savings products, credit insurance. Reuters