MetLife Inc. now expects third-quarter realized net investment losses of about $1.4 billion, net of income tax, related to the Brighthouse Financial Inc. spinoff.
The company initially anticipated third-quarter realized net investment losses of about $900 million, net of income tax, related to the separation.
The losses include tax-related charges, previously deferred intercompany losses realized upon the spinoff, losses on MetLife's retained investment in Brighthouse and partially offsetting spinoff tax benefits.
The increase of $500 million from the anticipated amount includes about $350 million previously treated as an offset to investment losses and around $150 million related to the impact of Brighthouse's opening stock price of $62.75 on MetLife's retained investment.
MetLife's third-quarter realized net investment losses will be affected by, among other things, changes in the market price of Brighthouse's common stock and market volatility in investment assets, and they are not reliably predictable, the company said.