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MetLife beats 1Q estimate
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May 8, 2001: 1:01 p.m. ET
Insurer's profit from operations edges above year-earlier figure; revenue up
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NEW YORK (CNNfn) - MetLife Inc., the No. 1 U.S. life insurer, unexpectedly posted a slight rise in first-quarter operating earnings Tuesday.
The company -- one of the nation's most widely-held stocks since its initial public offering in April 2000 distributed shares to policyholders -- earned $384 million, or 49 cents a share, excluding one-time items, compared with $379 million, or 48 cents a share, in the year-earlier period.
The results beat analysts' lowered average profit forecast of 47 cents per share, according to earnings tracker First Call. Analysts cut the average estimate by 5 cents in March after MetLife warned of storm claims hurting its car and home insurance unit.
Institutional business lifts profit
The profit growth came chiefly from investment returns at MetLife's institutional business -- the unit that sells life insurance and other retirement and savings products for companies to offer their employees.
That unit made more than half of MetLife's overall operating profit in the quarter, earning $195 million, up 39 percent from the same quarter a year ago.
The increase was largely due to higher returns from some venture capital and hedge funds in which the firm's institutional retirement and savings operation invested.
"We continued to benefit from our diverse business mix, as demonstrated by the performance of our institutional segment," Chairman and CEO Robert H. Benmosche said, "which partially offset weakness in our individual annuity business and auto and home segment, driven by poor equity market performance and adverse weather, respectively."
Revenue rose to $8.1 billion from $7.7 billion a year earlier.
MetLife (MET: down $0.24 to $28.99, Research, Estimates), which was mutually held until its IPO, said it still expects its earnings per share to grow 15 percent in 2001. 
- from staff and wire reports
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