MetLife Inc reported an 80 percent drop in second-quarter profit due to higher derivative losses.
The largest life insurer in the United States, like its peers, is heavily exposed to persistently low interest rates. But it has long had a substantial derivatives program designed to smooth out that risk.
Derivative net losses during the quarter was $1.2 billion, compared with a profit of $1.3 billion a year earlier, the company said.
Net profit fell to $471 million, or 43 cents per share, from $2.26 billion, or $2.12 per share, a year earlier.
(This story is corrected with net profit figure in paragraph 3 to $471 million from $471 billion)
(Reporting by Avik Das in Bangalore; Editing by Saumyadeb Chakrabarty)