MetLife Posts 3Q Loss On Investment Losses

SARA LEPRO

NEW YORK (AP) — MetLife Inc. on Thursday reported a loss of $650 million for the third quarter, driven by losses in its investment portfolio.

Investment losses totaled $1.42 billion, compared with investment gains of $483 million in the prior-year quarter. The losses were primarily related to complex investments known as derivatives, which are used to offset changes in interest rates and foreign currencies.

The performance of the investment portfolio, however, improved over the second quarter, when the company recorded $2.56 billion of investment losses, as the financial markets stabilized. The total value of the portfolio increased 5 percent to $338.3 billion.

For the period ended Sept. 30, MetLife reported a net loss of $650 million, or 79 cents per share, compared with a profit of $600 million, or 83 cents per share, a year earlier. It was the third quarterly loss in a row for the New York-based insurer.

Excluding investment gains and losses, operating earnings rose 18 percent over the third quarter of last year to $718 million, or 87 cents per share. That was in line with the average analyst estimate, which typically excludes one-time, unusual items.