MetLife profit falls 33pc as market turmoil hits investment income

MetLife reported a 33 per cent drop in fourth-quarter adjusted profit on Wednesday as a global market rout hurt the US insurer's investment returns, reports Reuters.

Lower private equity returns sent MetLife's net investment income down 15 per cent to $4.5 billion in the final quarter of a year that saw rising interest rates and growing recession risks pummel global markets across asset classes.

Shares of the insurer fell 2 per cent in extended trading following the results.

Adjusted premiums, fees and other revenues - excluding pension risk transfers (PRT) - decreased 1 per cent to $11.4 billion.

Still, improving underwriting trends in the United States, Europe and Latin America, alongside lower Covid-19 life insurance claims, partially offset the hit to its investment income.

US adjusted earnings climbed 20 per cent in the quarter, while Latin America and EMEA jumped 45 per cent and 67 per cent, respectively, on a reported basis.

The company posted adjusted profit of $1.2 billion, or $1.55 per share, for the three months ended December 31, compared with $1.8 billion, or $2.17 per share, a year earlier.

Analysts on average had expected $1.65 per share, according to IBES data from Refinitiv.