Tags: MetLife | Lowers | Outlook | Alico | Acquisition

MetLife Lowers Outlook of Alico Acquisition

Monday, 02 Aug 2010 09:26 AM

MetLife, the biggest U.S. life insurance company, lowered its estimate of how much of a boost to its business it will get from the acquisition of Alico, the foreign life insurance business of AIG.

Metlife said it now sees operating earnings per share for the year rising 40 cents to 45 cents per share. The company had previously said it expected to realize a 45 to 55 cent-per-share boost to its 2011 profit.

Analysts see Metlife reporting $5.35 per share for 2011.

Last week, MetLife posted second-quarter operating earnings, excluding investment gains and losses, of $1.02 billion, or $1.23 a share, beating analysts' average forecast of $1.00 a share, according to Reuters Estimates.

The company agreed in March to buy the foreign life insurance business of American International Group in a deal worth $15.5 billion at the time.

MetLife also said the Alico purchase will make it able to boost its 2011 year-end operating return on equity by about 100 basis points.

It said operating earnings per share does not include transition and other one-time expenses estimated at 12 cents per share, and said the revision reflects an assumed issuance of 75 million shares of common stock in a public offering at the July 30, 2010 closing price of $42.06 per share.

MetLife shares were down nearly 1 percent in premarket trading Monday.

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MetLife, the biggest U.S. life insurance company, lowered its estimate of how much of a boost to its business it will get from the acquisition of Alico, the foreign life insurance business of AIG. Metlife said it now sees operating earnings per share for the year rising 40...
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2010-26-02
 

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