he life insurance companies MetLife and Prudential Financial said on Wednesday that profits fell in the fourth quarter, hurt by investment losses and, in MetLife’s case, comparison with a large investment gain a year ago.

New York-based MetLife reported net income of $1.08 billion, or $1.44 a share, down from $3.83 billion, or $4.95 a share, in the year-earlier quarter, when the insurer recorded a $3 billion gain from its sale of two Manhattan apartment complexes.

Quarterly operating earnings, excluding some gains and losses and the most common performance measure used by analysts, rose to $1.2 billion, or $1.60 a share, compared with $1 billion, or $1.36 a share, in the previous period, the company said. Revenue rose 7.6 percent, to $13.83 billion.

Analysts on average had expected the life and health insurer, with a market capitalization of more than $44 billion, to post a profit equal to $1.43 a share on revenue of $13.79 billion, according to Reuters Estimates.

In December, MetLife said it expected operating profit of $1.40 to $1.45 a share for the fourth quarter and $5.90 to $6.20 for 2008.

In the quarter, MetLife recorded net realized after-tax investment losses of $182 million, including $49 million in credit-related losses.

Investment losses also took a bite out of rival Prudential’s results.

The company, based in Newark, reported an 11 percent drop in net income to $792 million, or $1.75 a share, from $893 million, or $1.88 a share, in the year earlier quarter.

Analysts had on average expected net income of $1.88 a share, according to Reuters Estimates. ( February 7, 2008 - nytimes.com )