MetLife’s Q3 Pre Earnings: What To Expect

November 1st, 2017 by Trefis Team
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MetLife

MetLife (NYSE: MET) is scheduled to report its third quarter earnings on Thursday, November 2. In Q2, the insurer’s revenues increased by nearly 13% year over year, driven by lower derivative losses and an increase in premiums. In terms of the bottom line, favorable underwriting in the U.S. Property and Casualty business and strong earnings from MetLife Holdings resulted in a nearly 52% increase in operating earnings last quarter.

In the upcoming Q3 results, we expect MetLife to continue its strong performance on the revenue front. We expect MetLife’s earnings to be positively impacted by increased interest rates in the U.S. and a stronger Yen compared to last year.

Our $58 price estimate for MetLife is around 10% ahead of the current market price.

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Factors Contributing To Earnings

  1. Interest Rates: Interest rates have risen continually over the last nine months. This is likely to have positively impacted MetLife’s investment income in the third quarter.
  2. Stronger Yen: We expect MetLife’s results to be positively impacted by a slightly stronger Japanese Yen (year over year), considering Japan contributes 85-90% of the company’s operating earnings in Asia, about half of which are earned in Yen. Asia contributed about 16% of MetLife’s revenues and 20% of its operating earnings last year.

See our full analysis of MetLife

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