MetLife Inc., the largest U.S. life insurer, said third-quarter profit fell 43 percent as investment results deteriorated and the company incurred tax costs tied to a U.K. subsidiary.
Net income dropped to $1.2 billion from $2.09 billion a year earlier, New York-based MetLife said Wednesday in a statement. Operating profit, which excludes some one-time items, was 62 cents a share, missing the 76-cent estimate from 18 analysts surveyed by Bloomberg. The insurer reported in September that the tax cost, which was tied to a court ruling, would cut earnings by about $792 million.
Insurers’ investment returns have been hurt for years by low yields, which limit income on the fixed-income securities that account for most of the industry’s holdings. In the third quarter, market volatility pressured results for companies such as American International Group Inc. and Travelers Cos. at other parts of their portfolio: alternative assets like hedge funds or real estate partnerships…Read more at Bloomberg