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MetLife posts its third quarterly loss in a row

City A.M. Reporter
METLIFE, the largest life insurer in the US, yesterday posted a quarterly loss, hurt by investment losses, some of which were tied to improvement in the company&rsquo;s own credit spreads. <br /><br />The group&rsquo;s operating results in the latest quarter matched Wall Street expectations and the results showed growth in sales across most of MetLife&rsquo;s business operations, both in US and international markets.<br /><br />The net loss was $650m (&pound;392m), compared with a profit of $600m in the year-ago quarter.<br /><br />Operating income rose 18 per cent to $718m, matching expectations.<br /><br />Chief executive Robert Henrikson said: &ldquo;Our businesses are performing well as evidenced by increased sales in a number of product areas in both the US and internationally.&rdquo;<br /><br />The net loss included $1.4bn in after-tax investment losses, including about $582m in derivatives losses tied to improvement in the company&rsquo;s own credit spreads.<br /><br />Under accounting rules, when its own credit spreads improve, MetLife has to record a decline in the value of its insurance liabilities. This also led to a loss in the previous quarter.