MetLife’s profit declines 82% on derivative losses

MetLife Inc., (MET) which originates mortgages through MetLife Bank, saw its fourth-quarter profit decline 82% as the company felt the impact of derivative losses totaling $1.54 billion. On the mortgage side of the business, MetLife Bank saw its 4Q total operating revenue fall 6% to $355 million as it experienced a decline in mortgage servicing revenue. Derivatives losses at parent company, MetLife Inc., disrupted what would have been a strong quarter with the insurer reporting a 65% rise in operating earnings. MetLife pulled in a 2010 fourth-quarter profit of $51 million, or 5 cents per share, on revenue of $12.8 billion. Comparatively, in the fourth quarter of 2009, the insurer posted earnings of $289 million, or 35 cents per share, on revenue of $12.3 billion. For the 2010 fiscal year, MetLife posted a profit of $2.7 billion, or $3 per share, compared to a 2009 net loss of $2.37 billion, or $2.89 per share. Write to Kerri Panchuk.

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