NEW YORK (AP)—MetLife Inc. said on Wednesday that its second-quarter earnings more than doubled, topping Wall Street’s expectations, as the insurer recorded a $1.4 billion one-time gain from derivatives tied to interest rates that recently fell.
The New York-based company reported net income of $2.26 billion, or $2.12 per share, for the three months ended June 30. That was up from earnings of $1.07 billion, or $1 per share, in the same quarter a year ago.
Excluding one-time items, the company posted operating income of nearly $1.43 billion, or $1.33 per share. Analysts had been expecting $1.24 per share, on average, according to FactSet.
Revenue rose slightly, to about $16.79 billion from $16.65 billion.
MetLife posted a net loss in the first quarter while reporting a $1.3 billion derivatives loss due to contracts linked to interest rates and credit spreads. But rates fell in the latest quarter, contributing to a $1.4 billion derivatives gain after taxes. The company uses derivatives to hedge changes in interest rates and fluctuations in foreign currencies.