Projo Biz Blog

MetLife Inc., the biggest U.S. life insurer with its headquarters for its auto and home unit in Warwick, plans to raise capital and cut jobs after saying third- quarter profit fell as much as 48 percent.

MetLife is selling 75 million shares, valued at $2.8 billion at current prices, the New York-based company said. The insurer wants to assure investors it has liquidity to meet obligations and enable the company "to take advantage of potential opportunities," Chief Executive Officer Robert Henrikson said.

The New York-based company is "in great shape," Henrikson said on a conference call with Wall Street analysts.

Henrikson withdrew his full-year earnings forecast after falling equity markets hurt returns in the company's annuity business and the housing slump pushed down the value of fixed- income investments. The insurer was stung in the quarter by losses on stakes in failed companies including Lehman Brothers Holdings Inc. and Washington Mutual Inc. It also said hedge-fund and private-equity returns performed worse than expected.

---