MetLife's Operating Profit Rises 4.9%

By Leslie Scism 

MetLife Inc. posted a 4.9% increase in first-quarter operating profit despite a slight decline in revenue, as the life-insurance industry wrestled with ultralow interest rates and companies with global operations were stung by the strong dollar.

MetLife, the nation's largest life insurer by assets, said its closely watched operating profit rose to $1.64 billion, or $1.44 a share, up from $1.56 billion, or $1.37 a share, in the year earlier period.

Insurance industry investors closely watch operating income, which excludes realized capital gains and losses in the companies' investment portfolios as well as derivatives gains and losses that are part of strategies to hedge certain risks.

MetLife's operating profit was above the consensus analysts' expectation of $1.41 a share.

The New York company's net income surged to $2.13 billion from $1.3 billion, buoyed by $534 million in net derivative gains reflecting the weakening of foreign currencies against the dollar and lower interest rates, the company said.

Total operating revenue was $17.03 billion, compared with analysts' expectation of $17.53 billion, and slightly below the $17.12 billion in the year-earlier period.

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