Metlife Inc (NYSE:MET) finally revealed its financials for the fourth quarter of 2020 and the full year. The results managed to surpass analysts’ expectation and reflect positively on the company considering the tough economic conditions that prevailed during the year.
The company a $5.2 billion net income or $5.6 billion adjusted in FY20 which is slightly lower than the $5.7 billion or $5.8 billion adjusted net income that Metlife reported for FY19. The EPS for the year dropped by 6 percent to $5.68 per share. When some notable items are excluded, the FY20 net income adds up to $5.8 billion which is higher than $5.7 billion in FY19.
The earnings on a per-share basis excluding notable items was $6.38 per share in FY20 compared to $6.06 in FY19. The company also reported a $78.67 per share book value as at December 31 2020, compared to $48.97 in the previous year. Metlife also reported a 7.6% return on equity (ROE) in FY20 and an adjusted 11.9 percent ROE with AOCI excluded. The company’s cash and cash equivalents amounted to $4.5 billion by December 31.
Metlife’s Q4 2020 financials
Metlife reported a $0.14 per share earnings or $124 million net income in Q4 2020 compared to $0.58 per share or $536 million net income in Q4 2019. The adjusted earnings figures were $1.8 billion, or $2.03 per share in Q4 2020 compared to $1.8 billion, or $1.98 per share in the corresponding quarter in 2019. The company’s ROE during the quarter was 0.7 percent, while the adjusted ROE for the same period was 15.2 percent excluding AOCI.
"MetLife delivered a very strong fourth quarter of 2020, capping off a year in which the strength of our diversified businesses was on full display," stated Michel Khalaf, the president and CEO of Metlife.
The CEO also noted that Metlife’s Q4 2020 performance was better than anticipated and that the full-year performance reflects a strong cash position and impressive discipline in handling expenses. It also points to the company’s ability to withstand low interest rates.