MetLife Inc. reported third-quarter adjusted profit and sales that beat expectations, announced a new $2 billion stock repurchase program and said it would divest its remaining Brighthouse Financial Inc. stake, but the stock still fell 1.7% in after-hours trade as it swung to a net loss. The insurer reported a net loss of $87 million, or 8 cents a share, in the quarter to Sept. 30, after net income of $571 million, or 51 cents a share, in the same period a year ago. Excluding non-recurring items, such as a $1.1 billion in Brighthouse separation-related charges, adjusted earnings per share came to $1.09, above the FactSet consensus of 89 cents. Revenue rose 2% to $16.10 billion, beating the FactSet consensus of $15.52 billion, as 9% growth in premiums, fees and other revenue offset a 7% drop in net investment income. The company had about $200,000 remaining in the $3 billion stock buyback program announced in 2016. Regarding Brighthouse, MetLife is the largest shareholder, with about 23 million shares, 19% of the shares outstanding. At Brighthouse’s stock closing price of $62.05 on Wednesday, the stake would be worth about $1.43 billion. MetLife’s stock has rallied 8.5% over the past three months, while the SPDR S&P Insurance ETF has tacked on 0.2% and the S&P 500 has gained 4.2%.
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