DOW JONES NEWSWIRES
MetLife Inc. (MET) swung to a third-quarter loss--its third in a
row--on $1.4 billion in investment losses.
But Chief Executive C. Robert Henrikson said the life insurer's
operating earnings increased 18% "despite the current economic
challenges." Sales also increased in the U.S. and
internationally.
Shares slid 1.7% to $36.23 in after-hours trading. The stock has
tripled from its all-time low in March but has fallen nearly 15%
from its 52-week high last month.
Insurers have been reporting stronger third-quarter results as
business improves and a rallying stock market put an end to big
investment losses. On Wednesday, Lincoln National Corp. (LNC)
reported its first profit in a year and said individual annuity
deposits rose.
MetLife, the largest U.S. life insurer and a bastion of
balance-sheet strength, declined to seek a handout from the
government earlier this year, having raised capital on its own. The
company has streamlined its structure, and last month said it is
gaining market share in every one of its lines of business.
For the latest quarter, MetLife reported a loss of $620 million,
or 79 cents a share, compared with a year-earlier profit of $630
million, or 83 cents a share. Operating earnings, which exclude
realized capital gains and losses, rose to 87 cents from 84
cents.
Revenue dropped 23% to $10.2 billion, largely on the investment
losses. Premiums slid 2.7%.
Analysts estimated earnings of 87 cents on revenue of $12.25
billion, according to a poll by Thomson Reuters.
The company reported an 8% premium decrease in the institutional
segment but a 5% increase for the individual business. U.S. annuity
deposits fell 6% to $4 billion, as a 19% gain in fixed-annuity
deposits was more than offset by a decline in variable annuity
accounts.
Earnings in MetLife's institutional business, which includes
group life, retirement and savings products, fell 22%. The
individual business, which includes life insurance and annuities
marketed through agents, had a 10% increase.
Book value increased 10% from a year earlier and 27% from the
second quarter.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com