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