NU Online News Service, Aug. 5, 5:15 p.m. – MetLife Inc., New York, is reporting $387 million in net income for the second quarter on $8.5 billion in revenue, up from $320 million in net income on $7.8 billion in revenue for the second quarter of 2001.
Operating results, which exclude investment losses and other gains and charges, increased to $504 million, from $419 million.
The latest net income figures include $215 million in losses related to the problems at WorldCom Inc., Clinton, Miss., MetLife says.
MetLife says the gaps, or “spreads,” between the returns it earned on its own investments and the returns it promised customers actually improved during the second quarter, both for individual and group customers.
The individual unit generated $196 million in operating income for the latest quarter on $3.9 billion in revenue, up from $186 million in operating income on $3.4 billion in revenue.
Sales of individual corporate-owned life insurance and bank-owned life insurance were down, but sales of individual life policies to individuals increased to $221 million, from $166 million, the company says.
The institutional unit generated $250 million in operating earnings for the latest quarter on $2.5 billion in revenue, up from $204 million in operating earnings on $2.1 billion in revenue.
Although institutional investment spreads were wider, group life and group disability claims costs were up, MetLife says.