New York – MetLife Inc, the largest U.S. life insurer, reported a 94 percent fall in quarterly profit as the company booked higher derivative losses.
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The company’s net profit fell to $64 million, or 6 cents per share, in the second quarter ended June 30 from $1.04 billion, or 92 cents per share, a year earlier.
On an operating basis, MetLife earned 83 cents per share.
The company’s total operating revenue fell 2.3 percent to $16.96 billion.
The insurer uses derivatives to lower risks stemming from interest rates, currency exchange rates and equities.
I have a $5000.00 life insurance policy. What’s my position. Is my wife going to collect ???? Or don’t Mention her that the net profit fell to $64 Million.
Making much less profit is not the same as losing money!
Your wife can sleep comfortably. Insurance Companies are regulated by individual States, and the funds that Life Insurance Policies are paid from are segregated and are held in AAA Bonds or similar. There has never been a Life Insurance policy anywhere the United States that wasn’t paid because there wasn’t any money available.