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Met Life (New York Stock Exchange: MET) released fourth-quarter results on Wednesday that missed the Wall Street consensus, as adjusted net investment income fell from a year earlier, as did premiums, fees and other income.
Adjusted EPS in the fourth quarter from $1.55vs. average analyst estimate of $1.64 vs. $1.21 in Q3 and $2.17 in Q4 2021. Adjusted EPS, excluding notable items, was $1.55 vs. $1.16 in the third quarter and $2.01 in the fourth quarter of 201.
Fourth-quarter revenue of $16.3 billion, below consensus of $17.2 billion, fell from $22.3 billion in the prior quarter and $20.1 billion in the year-over-quarter former.
Premiums, fees and other income of $11.3 billion compared to $19.6 billion in the third quarter and $15.2 billion in the fourth quarter of 2021.
Net investment income of $4.46 billion increased from $3.59 billion in the prior quarter and decreased from $5.23 billion in the prior year period.
MetLife (MET) total expenses in the fourth quarter of 2022 fell to $14.6 billion from $21.9 billion in the third quarter and from $18.8 billion in the fourth quarter of 2021.
Book value, excluding accumulated other comprehensive income other than foreign currency translation adjustments, was $56.34 per share as of December 31, 2022 compared to $54.37 per share as of September 30.
Adjusted return on equity in the fourth quarter, excluding non-FCTA AOCIs, increased 11.3% from 8.9% in the prior quarter.
The company guided by 2023 variable investment income of ~$2.0B, adjusted corporate and other losses of $650M-$750M, and effective tax rate of 22%-24%.
In the near term, he is targeting an adjusted return on capital of 13-15%, a free cash flow ratio of 65-75% of adjusted earnings, and a direct expense ratio target of 12.6% ( vs. 13.1% in the fourth quarter of 2022).
Conference call on February 2 at 9:00 am ET.
Previously, $1.55 MetLife (MET) Non-GAAP EPS Fails by $0.09, Revenue of $16.31B Fails by $900M
