UPDATE 1-MetLife picking up annuities biz from weaker rivals

* MetLife sees variable annuity sales beating 2007 levels

* Insurer also picking up fixed annuities business

NEW YORK, Sept 9 (Reuters) - MetLife Inc (MET.N) expects its sales of stock market-linked retirement products to exceed 2007 levels as it picks up business from weakened rivals.

Michael Farrell, executive vice president of MetLife's U.S. distribution, told investors gathered in New York on Wednesday that sales of variable annuities are expected to grow to between $15.3 billion and $15.6 billion in 2009.

While sales of the popular retirement products slumped in 2008, hurt by worries over declining stock markets, MetLife's current projection beats the $15.27 billion in variable annuities sales recorded by the insurer in 2007, before the worst of the credit crisis.

Farrell said MetLife, the largest U.S. life insurer, has also been picking up fixed annuity customers from weakened rivals, including American International Group Inc (AIG.N), which had been the market leader.

Farrell said that MetLife's business has advanced because it has remained financially stable, and has not pulled the plug on retirement products, like some competitors.

He said that one rival has stopped and restarted the sale of such products three times in the last six months. He did not name the company.

Many life insurers have tweaked their offerings of retirement products, especially those linked to stock market performance, after getting badly burned by the severe decline in values last year. (Reporting by Lilla Zuill, editing by Dave Zimmerman)