Tags: metlife | profit | derivatives | gains

MetLife Profit Doubles as Insurer Logs Derivatives Gains

Wednesday, 01 August 2012 04:32 PM

MetLife Inc., the largest U.S. life insurer, said second-quarter profit more than doubled on derivatives gains and growth in its international businesses.

Net income increased to $2.26 billion, or $2.12 a share, from $1.1 billion, or $1, a year earlier, New York-based MetLife said in a statement. Profit excluding some investing results was $1.33 a share, beating the $1.24 average estimate of 19 analysts surveyed by Bloomberg.

Chief Executive Officer Steven Kandarian, 60, is counting on international expansion to boost growth as the company looks to cut costs and limits sales of capital-intensive products in the U.S. MetLife uses derivatives to generate income and guard against interest-rate declines and currency fluctuations. The contracts can produce gains when rates fall.

“The countries that they’re in internationally are growth markets,” Jimmy Bhullar, an analyst at JPMorgan Chase & Co., said in an interview before results were announced Wednesday. “Over the past year, they have been in an integration mode, not necessarily in a growth mode. As the integration is completed, they’ll be in a better position.” He has the equivalent of a buy rating on the insurer.

MetLife fell 1.1 percent to $30.43 at 4 p.m. in New York trading. It has dropped 2.4 percent this year, compared with a gain of 6.7 percent gain for the 22-company Standard & Poor’s 500 Insurance Index.

© Copyright 2020 Bloomberg News. All rights reserved.

1Like our page
Wednesday, 01 August 2012 04:32 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved