The insurer MetLife announced a share buyback and reported a roughly five percent increase in first-quarter profit on Wednesday, driven by rising premiums and investment income.
On a constant currency basis, adjusted premiums, fees, and other revenues increased 16.5 percent to $13.61 billion over the previous year.
Along with approving a new share repurchase program worth up to $3 billion, New York-based MetLife announced that it will reinsure $10 billion in US retail variable annuity and rider reserves with Talcott Financial Group.
The investment portfolios of risk-averse insurers are typically disproportionately skewed toward bonds since they give higher returns in a market that is extremely unpredictable and uncertain.
Under the Trump administration, risk-averse insurers like MetLife have benefited from higher bond market returns due to high interest rates and increased political and economic unpredictability.
During the quarter, the company's adjusted net investment income increased by three percent to $5.21 billion.
At its investor day in December 2024, MetLife presented a new five-year plan to focus on four areas of its current business going forward, including expanding its foreign business in Asia and Latin America and its arm that provides group benefits insurance to companies.
Accelerating the expansion of its asset management business and increasing retirement plan activity were other areas of focus.
In the three months ending March 31, adjusted earnings available to common shareholders increased from $1.29 billion, or $1.77 per share, a year earlier on a constant currency basis to $1.35 billion, or $1.96 per share.
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The company's stock has dropped nearly eight percent so far this year, while the benchmark S&P 500 index has dropped 5.1 percent.