MetLife posts 3Q loss on investment losses

NEW YORK (AP) -- MetLife Inc. on Thursday reported a loss of $650 million for the third quarter, driven by losses in its investment portfolio.

AP - FILE - In this April 16, 2009 file photo, the MetLife skyscraper overlooks an older building in New ...

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Symbol	Price	Change
MET	36.84	+2.68

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Investment losses totaled $1.42 billion, compared with investment gains of $483 million in the prior-year quarter. The losses were primarily related to complex investments known as derivatives, which are used to offset changes in interest rates and foreign currencies.

The performance of the investment portfolio, however, improved over the second quarter, when the company recorded $2.56 billion of investment losses, as the financial markets stabilized. The total value of the portfolio increased 5 percent to $338.3 billion.

For the period ended Sept. 30, MetLife reported a net loss of $650 million, or 79 cents per share, compared with a profit of $600 million, or 83 cents per share, a year earlier. It was the third quarterly loss in a row for the New York-based insurer.

Excluding investment gains and losses, operating earnings rose 18 percent over the third quarter of last year to $718 million, or 87 cents per share. That was in line with the average analyst estimate, which typically excludes one-time, unusual items.

MetLife emphasizes operating income because it is considered more reflective of the company's performance.

Still, investors seemed slightly disappointed with the results, sending shares down 52 cents to $36.32 in after-hours trading. Shares had jumped $2.68, or 7.9 percent, to close the regular session at $36.84 before the report was released.

Life insurers make money by investing premiums before they must pay out when policyholders die or begin collecting on annuities. The turmoil in the stock market at the end of last year and the beginning of 2009 saddled MetLife and other insurers with hefty investment losses instead of profits.

But the benchmark Standard & Poor's 500 index rose nearly 15 percent during the third quarter, compared with a nearly 9 percent drop a year earlier.

Total revenue dipped 1 percent to $12.41 billion, slightly better than expected.

Premiums, fees and other revenue in MetLife's institutional business declined 8 percent to $4.2 billion, while the individual business saw premiums, fees and other revenue grow 5 percent to $2.2 billion.

In the international business, revenue was down 5 percent to $1.1 billion, but up 9 percent on a constant currency basis.

MetLife also declared an annual dividend of 74 cents, unchanged from last year's.

MetLife is viewed as one of the stronger insurance companies, weathering the economic downturn better than many of its peers. The company shied away from government assistance this year, even as other life insurers sought aid in the wake of escalating investment losses.

MetLife's stock has more than tripled since March, but is down about 11 percent from a 52-week high of $41.45 reached last month.