Friday, November 2, 2012

MET Q3 earnings

MetLife inc. (MET) released quarter three earnings on October 31st.

A loss of $984 million including $1.6 billion in goodwill impairment related to its retail annuity business as MET reduces its exposure to the risky product. CEO Steven Kandarian is targeting back offerings such as variable annuities by 12% by 2016. Variable annuity sales fell 46% year over year in a reflection of this plan moving forward.

Operating profit climbed to $1.32 a share from $0.91 just a year earlier beating street estimates by $0.04. Asian operating earnings rose 17% to 259 million while the America’s grew by 58% to $1.2 Billion.

Management gave no guidance on possible losses incurred by Hurricane Sandy. The market has responded negatively to the stock as they try to price in possible exposure to the storm.

MET continues to progress in its sale of MetLife to GE Capital. This quarter changes were made to the deal to shift regulatory oversight of the deal away from the FDIC. The sale is projected to be approved prior to a January deadline where MET would have to submit a new capital plan to the Federal Reserve. The sale of MetLife Bank is the largest short term driver for the stock as it would allow MetLife Inc. to raise the annual dividend and start share repurchasing programs. 

No comments: