MetLife reported third-quarter net income of $818 mn available to shareholders, down 36% from $1.28 bn a year earlier, as derivative and investment losses cut deep into results. The decline traced back to market-driven valuation hits rather than pressure in the company’s insurance operations.
Pretax derivative losses reached $929 mn, driven by stronger equity markets, rising long-term interest rates, and a firmer U.S. dollar.
MetLife said those forces tend to support portfolio returns over longer periods, yet they trigger short-term swings that land straight in quarterly earnings. This quarter, they landed hard.
Net investment income rose 16% to $6.09 bn. The company tied the increase to higher estimated fair values on certain securities that do not qualify as separate accounts under GAAP.
Gains there helped, though not enough to offset $325 mn in losses on other investments. The portfolio pulled in opposite directions at the same time.
Premiums, fees, and other revenues held steady at $12.46 bn, roughly flat year over year.
That stability points to durable demand across MetLife’s insurance and employee benefits lines, even as market volatility clipped reported profit.
CEO Michel Khalaf said business momentum is building as the year moves toward the finish. He said MetLife has already secured $12 bn in pension risk transfer mandates in the fourth quarter to date and rolled out strategic partnerships aimed at widening access to its insurance and retirement offerings.
According to Beinsure analysts, that mix of institutional volume and partnerships may cushion earnings if derivatives stay volatile.
Investors still want proof the company can keep earnings growing while rates and currencies keep shifting. Balance sheets feel every move.
MetLife also posted a sharp jump in third-quarter sales across Asia.
Total regional sales climbed 34% year over year to $786 mn on a constant-currency basis, the company said. Japan led with a 31% increase, while the rest of Asia surged 39%.
Lyndon Oliver, regional president for MetLife Asia, said on the earnings call that Japan’s growth came from new product momentum. He pointed to single-premium FX life products, a new yen-denominated variable life offering, and updates to existing lines. Simple drivers, executed fast.
Elsewhere in Asia, growth leaned heavily on partnerships. Bancassurance in China pushed premium volume higher, while demand for $-denominated products lifted results in Korea.
MetLife also expanded its bank partner network in China, which Oliver said added reach and steadier flows.
Looking ahead, Oliver told analysts he expects the momentum to carry into the fourth quarter. He said MetLife now expects to exceed its full-year Asia sales guidance.
