MetLife posts profit in second quarter on investment gains

MetLife posts profit in second quarter

NEW YORK — MetLife Inc. said Thursday that strong investment gains and a bump in premium revenues pushed it to a profit in the second quarter.

The New York-based life insurer said it earned $1.5 billion, or $1.84 per share, in the three months ended June 30. That compared with a loss of $1.43 billion, or $1.74 per share, in the year-ago quarter.

The latest quarter included a $1.47 billion net investment gain. By comparison, the company booked investment losses of $3.83 billion in the same quarter of last year.

Excluding one-time costs, operating earnings for the quarter were $1.23 per share. By that measure, analysts surveyed by Thomson Reuters expected a net income of $1 per share.

Shares of MetLife advanced $1.33 to $41.53 in after-hours trading, after gaining 90 cents during the regular session.

The investment gain in the latest quarter was largely the result of gains on derivatives. MetLife uses derivatives to hedge its exposure to risks, such as changes in interest rates and fluctuations in foreign currencies. Movements in those arenas cause gains and losses on derivatives for MetLife.

Total revenue for the latest quarter was $14.23 billion, up from $8.27 billion.

In addition to its strong investment gains, MetLife said premiums, fees and other revenues rose 4 percent to $8.68 billion from a year ago.

Premiums rose to $6.67 billion, from $6.58 billion. Fees from universal life and investment products rose to $1.49 billion, up from $1.22 billion.

Operating earnings for insurance products in the U.S. were $369 million, up 29 percent, as a result of higher net investment income and lower expenses. Operating earnings for retirement products were $238 million, up 66 percent.

Total expenses rose to $11.88 billion, from $10.64 billion in the year-ago period.