MetLife Profit Falls, Slightly Misses Forecasts

MetLife the largest U.S. life insurer, said Wednesday that operating earnings fell 42 percent in the third quarter, just below analysts' expectations.

Operating earnings totaled $639 million, or 88 cents a share, in line with preliminary estimates issued Oct. 7. On average, analysts expected 89 cents a share.

Operating income, excluding investment gains and losses, is the figure most commonly tracked by insurance analysts.

A year ago, MetLife reported net earnings of $985 million, or $1.29 per share, and operating earnings of $1.1 billion, or $1.52 per share.

The latest results reflected a decline in variable investment income, which it said was $120 million after taxes, or 17 cents per share.

Income from premiums, fees and other revenue rose 16 percent to $8.6 billion in the quarter.

MetLife shares, which fell 23 cents to $29.55 in the regular session, rose to $29.65 after the results were issued.

AP

MetLife said it would maintain an annual common stock dividend of 74 cents per share.

Shares of MetLife were roughly flat in extended trading after closing 0.77 percent lower at $29.55.

Earlier this month, MetLife warned that its third-quarter results will be marked by a drop in investment income and fee revenue amid the downturn in world financial markets.

Insurers have been under pressure to maintain solid capital positions in order to avoid damaging downgrades by ratings agencies. Sustaining high ratings is key for insurers because lower ratings can mean higher costs, and in some cases, even a loss of a business.

- CNBC.com staff contributed to this story.

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