A giant real estate gain helped profits at MetLife Inc. during the fourth quarter of 2006.
MetLife, New York, is reporting $3.9 billion in net income for the latest quarter on $13 billion in revenue, up from $677 million in net income on $12 billion in revenue for the fourth quarter of 2005.
Completing a $5.4 billion sale of the Peter Cooper Village and Stuyvesant Town developments in Manhattan led to a $3 billion gain.
Individual annuity earnings were up 10%, but an increase in regulatory charges and other expenses hurt group life profits.
MetLife notes that adoption of American Institute of Certified Public Accountants Statement of Position 05-1 will lead to a reduction of at least $275 million in deferred acquisition costs. The reduction will be recorded as a reduction in retained earnings, the company says.
In other earnings news:
- Universal American Financial Corp., Rye Brook, N.Y., is reporting $64 million in net income for the fourth quarter of 2006 on $333 million in revenue, up from $3.9 million in net income on $222 million in revenue for the fourth quarter of 2005.