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:
Post a Comment