DOW JONES NEWSWIRES
MetLife Inc. (MET) swung to a second-quarter loss as the company
recorded another $3.83 billion of investment losses, which have
mounted for insurers since markets melted down last year.
MetLife, the largest U.S. life insurer and a bastion of
balance-sheet strength, declined not to seek a handout from the
government, having raised capital on its own to weather the last
year's financial storm. The company has also streamlined its
structure, a move analysts at Fox-Pitt Kelton said could boost
revenue and trim $600 million from annual expenses.
Given the company's relative strength, many on Wall Street think
MetLife could be on the prowl for acquisitions, though recent talks
to buy American International Group Inc.'s (AIG) international
life-insurance operations appear to have stalled.
The company reported a loss of $1.43 billion, or $1.74 a share,
compared with year-earlier earnings of $915 million, or $1.22 a
share. Operating earnings, which exclude net realized capital gains
and losses, fell to 88 cents a share from $1.22.
Revenue slid 31% to $8.27 billion, which was hurt by the $3.83
billion of investment losses.
Analysts projected per-share operating earnings of 68 cents on
revenue of $11.71 billion, according to a poll by Thomson
Reuters.
The company reported an 8% premium increase in the institutional
segment but a 3% decline for the individual business. U.S. annuity
deposits rose 43%.
Earnings in MetLife's institutional business - which includes
group life, retirement and savings products - fell 32%. The
individual business, which includes life insurance and annuities
marketed through agents, had a 14% increase.
Shares were recently flat at $33.57 after-hours. The stock has
essentially tripled in the past five months but remains down almost
half from last September's 52-week high.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com