MetLife Earnings: Higher Interest Rates Boost Recurring Investment Income

No-moat-rated MetLife's second-quarter results were largely in line with our expectations as the company reported adjusted earnings of $1.49 billion, or $1.94 per share in the second quarter, compared with $1.66 billion, or $2.04 per share in the second quarter of the previous year. The company paid a quarterly dividend of $0.52 per share in the second quarter, which represents a 3.2% dividend yield as of the current stock price. The adjusted book value per share, which removes the impact of accumulated other comprehensive income, was reported at $53.5 per share, up 2% compared with $52.3 per share in the second quarter of the previous year. We are maintaining our $63 fair value estimate for MetLife after incorporating the second-quarter results.