MetLife says 4Q results will miss estimates

NEW YORK — MetLife Inc. said Monday ahead of an investor's conference that its fourth-quarter and 2009 operating results will fall short of analysts' expectations because of a sharp decline in variable investment income and continued weakening of the equity markets.

The New York-based insurer said it expects fourth-quarter operating results of between a loss of $50 million, or 5 cents per share, and earnings of $150 million, or 20 cents per share. Analysts polled by Thomson Reuters, on average, forecast earnings of 74 cents per share for the quarter. These estimates typically exclude one-time items.

Insurers like MetLife tend to emphasize operating income because it excludes certain costs — including some types of investment gains and losses such as those from derivatives — that insurers do not consider reflective of trends in their business.

MetLife said its overall net income, which includes certain investment gains, will be between $1.2 billion, or $1.50 per share, and $2 billion, or $2.55 per share. The estimate is based on realized investment gains, primarily from derivatives, of between $1.2 billion and $1.8 billion.

MetLife's projected 2009 operating profit also falls below analysts' expectations. MetLife said it expects to generate between $3 billion and $3.3 billion in operating earnings, or $3.60 to $4 per share.

The estimate does not include an anticipated charge of about $70 million, or 8 cents per share, tied to an operational efficiency initiative.

Analysts, on average, forecast MetLife will earn $4.48 per share next year.

The 2009 estimate is based on revenue growth of between 4 percent and 5 percent compared with 2008 and low variable-investment income. MetLife said the projection also forecasts a 5 percent increase in the Standard & Poor's 500-stock index during the year.

The company revenue between $32.7 billion and $33.3 billion this year.

In premarket trading Monday, MetLife shares jumped $1.24, or 4 percent, to $32.

Back To Top

Illinois Tool Works cuts 4Q, year profit guidance

Associated Press

Mon Dec 8

0