Investing.com -- Shares of MetLife (NYSE: NYSE:MET) fell 2% today after the company reported its fourth quarter earnings, which showed a mixed financial performance. While the insurer matched analyst estimates with its Q4 earnings per share (EPS) of $2.09, the market reacted negatively to the overall results.
MetLife announced a net income of $1.2 billion for the fourth quarter, a significant increase from $574 million in the same period last year. Adjusted earnings for the quarter were $1.5 billion, representing a 7% rise from the fourth quarter of 2023. Despite these gains, the stock’s decline reflects investor concerns over specific segments of the business.
The company’s total revenues for the quarter were down, with premiums, fees, and other revenues growing by 6% to $14.5 billion, which was overshadowed by losses in net investment income and derivative losses. The derivative losses were primarily driven by an increase in long-term interest rates and the strengthening of the U.S. dollar against the yen.
MetLife’s Asia segment reported a substantial 50% increase in adjusted earnings, but this was balanced by weaker performances in the Retirement and Income Solutions (RIS), Latin America, and MetLife Holdings segments. The RIS segment saw an 8% decrease in adjusted earnings, attributed to lower recurring interest margins and less favorable underwriting, despite a 26% increase in adjusted premiums, fees, and other revenues driven by pension risk transfer deals.
Analysts had mixed reactions to MetLife’s earnings report. TD Cowen maintained a buy rating but noted that the outlook might imply a downside to 2025 EPS estimates. Jefferies also kept a buy rating, referring to the fourth quarter as a "bit of a bounce back quarter" after a weak third quarter and expressing confidence in MetLife’s ability to deliver sustainable double-digit EPS growth. Morgan Stanley (NYSE:MS), with an overweight rating, highlighted that while results were better than expected due to Asia, the key focus for investors would be the company’s execution on the 2025 outlook.
The company’s CEO, Michel Khalaf, stated that MetLife’s strength and resilience were evident in 2024, as they delivered solid results for both the fourth quarter and the full year, exceeding their five-year Next (LON:NXT) Horizon commitments. MetLife is now embarking on its New Frontier strategy with a greater emphasis on responsible growth.
As the market digests the details of MetLife’s financial performance, investors will be closely monitoring the company’s progress against its strategic goals and its ability to navigate the challenges and opportunities that lie ahead in its various market segments.
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