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.
Write to Leslie Scism at leslie.scism@wsj.com
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