Metlife Q4 net income skids to $289 mn

Life insurance firm Metlife Inc has reported 70 per cent decline in its net income at $289 million for the period ending December 31, 2009, on account of investment losses.

In the year-ago period, the company had a net income of $954 million, Metlife said in a statement.

The insurer's investment losses of %898 million in the fourth quarter of 2009 kept its profit in the red. It had posted $2.15 billion gain in the year-ago period.

MetLife also said it is in discussions with American International Group for buying its subsidiary, American Life Insurance Company, an international life insurance firm.

However, it said, "no agreement has been reached and there are no assurances that an agreement would be reached".

Total revenue dropped to $12.34 billion in the quarter under review from $13.96 billion in the same period last fiscal.

"MetLife delivered a very strong fourth quarter, with operating earnings significantly higher than a year ago, and both our fourth quarter and full year 2009 earnings are above the estimates we provided at Investor Day in December," the company's Chairman, President and CEO C Robert Henrikson said.

The company said it uses derivative as a hedge against a number of risks, including changes in interest rates and fluctuations in foreign currencies.