MetLife Reports Loss of $296 Million for Quarter

MetLife Inc. had a loss in the fourth quarter, reflecting stagnant sales and losses on investments in Enron Corp. and Argentina. The largest U.S. life insurer also incurred expenses of $489 million as it fired staff and set aside money to settle lawsuits.

The New York-based company’s net loss was $296 million, or 41 cents a share, compared with net income of $591 million, or 74 cents, a year earlier. Revenue was little changed at $8.4 billion.

MetLife took $172 million in investment losses and absorbed costs for the pending lawsuit settlement and job cuts. Excluding these items and another related to annuity contracts, profit rose 9%, exceeding analysts’ expectations. Chief Executive Robert Benmosche has taken steps to reduce expenses, though analysts said the company needs to boost revenue.

MetLife put aside $159 million in the quarter to settle pending litigation over alleged race-based pricing of policies sold before 1973. The insurer also had $330 million in costs to cut about 2,100 jobs, or 7% of staff, and a $74-million expense related to group annuity contracts at a unit.

Excluding these items and realized investment losses, profit rose to $439 million, or 59 cents a share, from $404 million, or 51 cents, a year earlier. Analysts expected MetLife to earn 58 cents, according to a poll by Thomson Financial/First Call.

MetLife shares gained 80 cents to $30.37 on the New York Stock Exchange.

Other company earnings, excluding one-time gains and charges unless noted:

* Deere & Co., the largest tractor maker, had a loss of $38 million, or 16 cents a share, in the quarter ended Jan. 31, compared with net income of $56 million, or 24 cents, a year earlier. Sales fell 6.8% to $2.52billion.

* TrizecHahn Corp. said its fourth-quarter earnings rose 17% to $88 million, or 58 cents a share. Revenue rose to $291.3 million.

The results don’t include $369.5million in previously announced charges, mainly to write down the value of properties, including Hollywood & Highland, the new home of the Academy Awards show.