The economic downturn has put some pressure on its employee-benefits business, but MetLife Inc.'s (MET) top benefits sales executive says the company has done better than most, despite an alarming trend toward underpricing by some competitors.

"We see it in some business," particularly in the biggest group life and employee-disability accounts, said Anthony J. Nugent, executive vice president of employee benefits sales for MetLife, during a conference sponsored by Wachovia Securities that was Webcast Tuesday. "MetLife is involved in a lot of the bid activity," he said. "We know irrational pricing when we see it."

The activity is driven by a desire to build up market share in a weak environment, and he estimated some price quotes are 10% to 15% below the appropriate rate.

MetLife's group insurance business covers around 40 million employees and more than 90 of the Fortune 100, Nugent said. It sells life and non-medical health products, voluntary benefits programs and retirement and savings programs. It does not sell health insurance.

As for its own business, MetLife has done well enough to be in the market to attract top talent from competitors or even make some acquisitions. Nugent said the company is "in many conversations," about potential recruitment or merger and acquisition opportunities.

Keeping a relatively strong financial strength rating has been a help, he said. A strong rating, once considered "table stakes," is now seen as important enough to influence buying decisions, Nugent said.

Layoffs have hurt MetLife's employee-benefits business as companies reduce headcounts, "but the good news is we still have the federal government, and they are growing," Nugent said.

He also said the company sees health-insurance reform "coming down the pike," and sees the potential for some favorable impact on its voluntary benefits programs.

Shares of MetLife were up 1.9% recently to $29.41.

-By Lavonne Kuykendall, Dow Jones Newswires; 312-750-4141; lavonne.kuykendall@dowjones.com