MetLife Inc, the USA’s biggest life insurance company, published a negative quarterly report. The quarterly income declined by 7.5 times down to $127 million or 9cents per share. In 2011, the company earned $959 million or 90 cents per share.
The company’s operating profit increased by 10% up to $1.4bn, which is $1.25 per share. Therefore, it exceeded the target of $1.12-1.22 per share.
The insurance company’s operating proceeds increased from $16.3bn up to $18.4bn.
Hurricane Sandy was some of the major reasons for the income decline. It caused a $70 million decline, which is 6 cents per share. The company lost over $900 million on derivatives, which were used to hedge the risks connected with floating interest rates and floating currencies.
The company’s level of capitalization dropped by 0.5% in 2012.
The chart below, courtesy of , reflects the current state of affairs in the market of MLU:
