MetLife Boosts Outlook After Better-Than-Expected Results

MetLife raised its 2007 outlook after second-quarter earnings came in ahead of Wall Street forecasts on strong investment income and growth across its business segments. The life insurer said it earned $1.1B ($1.48/share) on revenue of $13.22B compared with $617M ($0.80/share.) on revenue of $11.35B a year ago. Operating earnings, which exclude investments, were $1.72, up from $1.28 last year. Analysts had been expecting earnings of $1.33/share and revenue of $13.3B, on average. Earnings grew 15% to $521M in the company's institutional business, while the individual business jumped 27% to $449M, the auto and home division rose 9% $108M. and international earnings popped 83% to $117M. Premiums, fees and other revenue totaled $8.6B while total assets were a record $552.6B. Looking ahead, MetLife now expects earnings of $5.65-$5.80/share in 2007, up from the $5.05-$5.30 range it had forecast previously. Analysts, meanwhile said the good days may not last. "These results are at risk of being diminished when the money for private equity dries up," said Mayiz Habbal, managing director of the Securities and Investments Group at Celent LLC. Analysts had been forecasting 2007 earnings of $5.47/share. Shares were up 0.5% in after-hours trading.

Sources: Press release, Bloomberg, Reuters, AP
Commentary: MetLife Forecasts Disappointing 2007 Operating EPS • 1Q07 Insurance Earnings: What's Working, What's Not
Stocks/ETFs to watch: MET. Competitors: PRU, AIG. ETFs: IAK, KIE

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