J.P. Morgan: MET 4Q Weaker Than Expected

MetLife, Inc.'s (NYSE: MET) 4Q10 results were weaker than expected, marked by a shortfall in earnings and mixed business trends, J.P. Morgan reports.

“Still, we maintain a positive long-term view on the company given its strong franchise and expanding ROE.

“MET reported 4Q10 operating EPS of $1.14. Adjusted for a few unusual items, we estimate that MET would have earned $1.01, below our $1.05 estimate. Excluding the ALICO deal, MET would have earned $1.08, below our $1.12 estimate (on the same basis).

“Individual life earnings were better than expected, but results in the group life, non-medical health, corporate funding, international, and banking businesses fell short. Our EPS estimates are unchanged. We are reducing our overall top-line and margin assumptions, but the impact is likely to be offset by the stronger equity market and higher interest rates.”

MetLife closed Wednesday at $47.60.