MetLife forecasts 4Q boost

MetLife Inc. today said that its fourth-quarter profits will be up from the 2007 period and that it will reap the benefits of investment gains. Fourth-quarter net income will be between $1.2 billion and $2 billion, or $1.50 to $2.55 per share, up slightly from $1.1 billion, or $1.44 per share, in the fourth quarter of 2007, the New York-based insurer said in a statement today. It also expects to bring in $1.2 billion to $1.8 billion in net realized investment gains, net of income tax, reflecting derivative gains. For its fourth-quarter operating earnings, MetLife projected an enormous range from a loss of $50 million to a profit of $150 million. For the full year of 2008, MetLife expects a profit of $3.3 billion to $4.1 billion, or $4.52 to $5.60 per share. Last year, the company booked a profit of $4.3 billion, or $5.62 per share. The insurer also gave a forecast for its 2009 operating earnings, predicting a range of $3 billion to $3.3 billion, or $3.60 to $4 per share. But that outlook excludes an expected charge of $70 million, revenue growth of between 4% and 5%, low variable investment income and a 5% increase in the Standard and Poor’s 500 stock index.