Metlife profits soar in 2014
US life insurer Metlife saw a significant increase in its 2014 net income, which totalled $6.2 billion in 2014, compared with $3.2 billion in 2013.
The insurer reported a five percent increase in operating earnings, totalling $6.6 billion in 2014 compared with $6.3 billion in 2013.
The increase in operating earnings for the year reflects operating earnings growth of 7 percent in the Americas (8 percent on a constant currency basis), 4 percent in Asia (8 percent on a constant currency basis) and 10 percent in EMEA (16 percent on a constant currency basis). On a per share basis, 2014 operating earnings were $5.74, up 2 percent over 2013.
“Our full-year 2014 results demonstrated solid growth across all of our regions,” said Steven Kandarian, chairman, president and chief executive officer of MetLife. “MetLife continues to run its business to create long-term shareholder value. Our operating earnings per share have grown at a compound annual rate of 9.6 percent from 2011 through 2014, and our full-year 2014 operating return on equity reached 12 percent for the second year in a row.”
In the fourth quarter, the company reported operating earnings of $1.6 billion, up 2 percent over the fourth quarter of 2013.
This was attributable to a previously announced increase in asbestos legal reserves, which decreased operating earnings by $117 million, after tax; tax adjustments in Latin America and EMEA, which increased operating earnings by $27 million after tax; favourable catastrophe experience and prior year development, which increased operating earnings by$16 million after tax and certain insurance adjustments in the Americas and an actuarial update in Asia, which increased operating earnings by $5 million, after tax.
Profits for the quarter reached $1.5 billion, or $1.30 per share in 2014, compared with $908 million in 2013.
