MetLife Earnings: Strong Underlying Results and Higher Interest Income Mark Good Quarter

No-moat-rated MetLife reported a decent set of numbers for the third quarter. Adjusted earnings came in at $1.47 billion, or $1.95 per share, up 35% from $1.08 billion, or $1.36 per share, in the year-ago quarter. The company reported an annualized adjusted return on equity of 14.9%. The quarter was marked by strong underwriting results and materially higher interest income. MetLife paid a quarterly dividend of $0.52 per share, which represents a 3.5% dividend yield at the current stock price. Adjusted book value per share, which removes the impact of accumulated other comprehensive income, was reported at $53.00, up 2% from $52.40 in the third quarter last year. We are maintaining our $63 fair value estimate after incorporating third-quarter results.