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MetLife (NYSE:MET) on Wednesday posted Q4 results that fell short of Wall Street consensus as adjusted net investment income dropped from a year ago as did premiums, fees and other revenue.
Q4 adjusted EPS of $1.55, vs. average analyst estimate of $1.64 vs. $1.21 in Q3 and $2.17 in Q4 2021. Adjusted EPS, excluding notable items was $1.55 vs. $1.16 in Q3 and $2.01 in Q4 201.
Q4 revenue of $16.3B, trailing the $17.2B consensus, dropped from $22.3B in the prior quarter and from $20.1B in the year-ago quarter.
Premiums, fees, and other revenue of $11.3B vs. $19.6B in Q3 and $15.2B in Q4 2021.
Net investment income of $4.46B rose from $3.59B in the prior quarter and declined from $5.23B in the year-ago period.
MetLife’s (MET) total expenses in Q4 2022 fell to $14.6B from $21.9B in Q3 and from $18.8B in Q4 2021.
Book value, excluding excluding accumulated other comprehensive income other than foreign currency translation adjustments, was $56.34 per share at Dec. 31, 2022 vs. $54.37 per share at Sept. 30.
Q4 adjusted return on equity, excluding AOCI other than FCTA, was 11.3% increased from 8.9% in the prior quarter.
The company guided for 2023 variable investment income of ~$2.0B, corporate & other adjusted loss of $650M-$750M, and effective tax rate of 22%-24%.
Near term, it’s targeting adjusted return on equity of 13%-15%, free cash flow ratio of 65%-75% of adjusted earnings, and direct expense ratio target of 12.6% (vs. 13.1% in Q4 2022).
Conference call on Feb. 2 at 9:00 AM ET.
Earlier, MetLife (MET) non-GAAP EPS of $1.55 misses by $0.09, revenue of $16.31B misses by $900M
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