By Lilla Zuill
NEW YORK, Feb 3 (Reuters) - MetLife Inc, the largest U.S. life insurer, said on Tuesday that earnings fell in the fourth quarter on lower investment income, but still beat expectations, sparking a rise in its shares.
Net income dropped 12 percent to $954 million, and operating earnings of 19 cents a share, but still topped analysts' average expectations of 14 cents a share. The operating profit declined from $1.54 a share a year earlier.
Investment income declined 23 percent to $3.6 billion.
New York-based MetLife also recorded $403 million in credit-related losses and writedowns in the quarter, but had an overall gain of $1.3 billion after hedging.
'Perhaps the extent of the (investment income) decline was a little more than expected, but I did expect to see a decline, given everything going on in the fourth quarter,' said Alan Rambaldini, an insurance analyst with Morningstar.
Total revenue rose 13 percent to $13.96 billion, which Rambaldini said likely reflected a 'flight to quality,' indicating consumers may be choosing MetLife over competitors because it is strongly capitalized.
Life insurers posted large investment losses in the third quarter, worrying investors concerned over capital erosion. But MetLife has fared better than others, and moved quickly last October to raise $2 billion in fresh capital.
MetLife shares rose 3.1 percent in after-market trading after closing down 1.9 percent at $28.52 in the regular New York Stock Exchange session.
(Reporting by Lilla Zuill; editing by Andre Grenon and Jeffrey Benkoe) Keywords: METLIFE/ (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, Feb 3 (Reuters) - MetLife Inc, the largest U.S. life insurer, said on Tuesday that earnings fell in the fourth quarter on lower investment income, but still beat expectations, sparking a rise in its shares.
Net income dropped 12 percent to $954 million, and operating earnings of 19 cents a share, but still topped analysts' average expectations of 14 cents a share. The operating profit declined from $1.54 a share a year earlier.
Investment income declined 23 percent to $3.6 billion.
New York-based MetLife also recorded $403 million in credit-related losses and writedowns in the quarter, but had an overall gain of $1.3 billion after hedging.
'Perhaps the extent of the (investment income) decline was a little more than expected, but I did expect to see a decline, given everything going on in the fourth quarter,' said Alan Rambaldini, an insurance analyst with Morningstar.
Total revenue rose 13 percent to $13.96 billion, which Rambaldini said likely reflected a 'flight to quality,' indicating consumers may be choosing MetLife over competitors because it is strongly capitalized.
Life insurers posted large investment losses in the third quarter, worrying investors concerned over capital erosion. But MetLife has fared better than others, and moved quickly last October to raise $2 billion in fresh capital.
MetLife shares rose 3.1 percent in after-market trading after closing down 1.9 percent at $28.52 in the regular New York Stock Exchange session.
(Reporting by Lilla Zuill; editing by Andre Grenon and Jeffrey Benkoe) Keywords: METLIFE/ (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.