MetLife Reports Lower Net Income
NU Online News Service, Nov. 6, 3:53 p.m. -- MetLife Inc., New York, is reporting $162 million in net income for the third quarter ...
By Staff Writer | November 06, 2001 at 07:00 PM
NU Online News Service, Nov. 6, 3:53 p.m. – MetLife Inc., New York, is reporting $162 million in net income for the third quarter on $8.1 billion in revenue, compared with $241 million in net income on $7.9 billion in revenue for the third quarter of 2000.
Earnings for the latest quarter include $208 million in losses related to the Sept. 11 attacks.
Sept. 11 losses had the greatest effect on the MetLife unit that sells group disability insurance. Sept. 11 losses at that unit amounted to $83 million, or more than 10% of revenue.
The unit ended up losing $44 million on $796 million in revenue, compared with $38 million in operating earnings on $696 million in revenue for the third quarter of 2000.
MetLife life operations absorbed a total of $114 million in Sept. 11 losses.
At the life operations:
Group life earned $16 million on $1.5 billion in revenue, down from $63 million in operating income on $1.4 billion in revenue, because of $99 million in attack-related losses.
Individual traditional life products generated $73 million in operating earnings on $2 billion in revenue, down from $105 million in operating earnings on $2 billion in revenue.
Individual variable life and individual universal life products generated $23 million in operating earnings on $352 million in revenue, down from $35 million in operating earnings on $346 million in revenue.
The individual annuity and group retirement units suffered no attack-related losses.
Individual annuities brought in $57 million in operating earnings on $614 million in revenue, compared with $48 million in operating earnings on $624 million in revenue.
Group retirement products brought in $87 million in operating earnings on $906 million in revenue, compared with $58 million in operating earnings on $925 million in revenue.
Total MetLife commission expenses fell 1% for individual products, to $150 million, but increased 11% for group products, to $40 million.
Trends in investment spreads on MetLife's own general account assets were mixed: the company earned less on each dollar of assets backing its individual variable life, individual universal life and group health products, but it earned more on the assets backing its individual annuities, group life policies and group retirement products.