MetLife expects 50% bump-up in earnings next year

MetLife Inc. on Monday projected fourth-quarter and 2010 operating earnings mostly above analyst estimates.

The life insurer said it expects fourth-quarter operating earnings to range between 90 cents per share and 95 cents per share, excluding one-time charges and investment gains and losses.

Analysts polled by Thomson Reuters forecast earnings of 91 cents per share for the quarter. Analysts typically exclude special charges and gains from their estimates.

MetLife earned $132 million, or 17 cents per share, during the final quarter of 2008.

Fourth-quarter results should be helped by an increase of roughly 7% in revenue from premiums and fees, MetLife said. The New York-based insurer projects money derived from writing new policies, fees and other revenues will range between $8.5 billion and $9.1 billion during the fourth quarter.

For 2010, MetLife said it expects operating earnings to grow about 50% to between $3.3 billion and $3.6 billion, or $4 to $4.40 per share. The 2010 estimate does not include an expected charge of $30 million, or 4 cents per share, for an initiative to improve efficiencies at the insurer.

Analysts forecast earnings of $4.11 per share in 2010.

C. Robert Henrikson, MetLife’s CEO, said in a statement that the company expects an increase between 6% and 8% in premiums, fees and other revenues in 2010. He also expects higher variable interest income, lower expenses and disciplined pricing and underwriting to help MetLife achieve a 50% jump in earnings.