(Reuters) – MetLife on Wednesday reported a rise in its fourth-quarter profit as it earned more in premiums and investment income.
Businesses have increased spending on insurance products as they prioritized financial security to safeguard against risks, despite higher premium prices.
Adjusted premiums, fees and other revenues jumped 6% to $14.4 billion from last year.
Risk-averse insurers’ investment portfolio tends to be heavily weighted toward bonds, which return better yields in a high interest rate environment.
Higher interest rates have increased yields from bonds held in insurers’ investment portfolios. That, along with a broader equity markets’ rally, has helped insurers earn more on their investments.
Adjusted net investment income rose 5% to $5.3 billion in the quarter, primarily due to higher variable investment income and asset growth.
Adjusted earnings available to common shareholders rose to $1.46 billion, or $2.09 per share, in the three months ended Dec. 31, from $1.36 billion, or $1.83 per share, a year earlier.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Alan Barona)
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