MetLife Inc. says it earned less during the third quarter than it originally had hoped but still expects to report more than $600 million in operating earnings for the quarter on $8.6 billion in revenue.
Operating earnings were lower than they were in the third quarter of 2007, but revenue was up about 16%, according to MetLife Inc., New York.
Variable investment income was about $117 million lower than anticipated, but the strength of the dollar and the increase in credit default swap spreads helped the company generate about $735 million in derivative gains, the company says.
MetLife spent about $48 million on severance and other costs related to the company’s “Operational Excellence” initiative.
“MetLife’s Operational Excellence plans are anticipated to extend through 2010,” the company says.
The company will be recognizing about $400 million to $475 million in net investment gains in its third-quarter earnings report on about $324 billion in general account assets.
Unrealized losses on fixed-maturity securities have increased to $17 billion, from $10 billion June 30, while gross unrealized gains have fallen to $5 billion, from $6 billion.