UPDATE 6-MetLife sees operating earnings down through 2009

(Adds fall in life insurance index, updates share price)

By Lilla Zuill

NEW YORK, Dec 8 (Reuters) - MetLife Inc (MET.N) on Monday forecast operating earnings below Wall Street expectations through 2009 but said it was strongly capitalized and expects to grow faster than its rivals.

The largest U.S. life insurer said net profit in the fourth quarter would be up from a year earlier, helped by investment gains. But it painted a gloomier picture for operating earnings, which exclude investment gains and losses.

MetLife said some changes to regulatory capital requirements could give it a little more breathing room, but it was not expecting a significant benefit. Shares of life insurers fell in afternoon trade. The Dow Jones U.S. life insurance index .DJUSIL was down 1 percent.

"The last thing we want to do is overstate and under-deliver," MetLife Chief Executive Robert Henrikson said at an investor event.

Life insurance stocks, including MetLife, have been battered since the companies reported big investment losses in the third quarter.

Still, Henrikson said MetLife expects to outpace its rivals' growth and could get a results boost from acquisitions.

He said the company was strongly capitalized, echoing comments last week from competitors Prudential Financial Inc (PRU.N) and Hartford Financial Services Group Inc (HIG.N).

MetLife declined to say whether it plans to apply for funds under the government's $700 billion financial industry rescue program, as have a handful of its rivals.

The company forecast fourth-quarter net income of $1.2 billion to $2 billion, helped by modest credit losses and substantial derivatives gains.

Premiums, fees and other revenue are expected to total between $7.9 billion and $8.5 billion, up from $7.7 billion a year earlier.

However, the company expects fourth-quarter operating results ranging from a loss of 5 cents a share to a profit of 20 cents a share -- far short of analysts' average estimate of a profit of 83 cents, according to Reuters Estimates.

MetLife said the results would be hit by a "significant decline in variable investment income and the poor equity markets." Variable annuities are a popular investment-linked retirement product sold by life insurers.

The company forecast 2009 operating earnings per share of $3.60 to $4.00. The average Wall Street estimate had been $4.59.

"Our earnings power is very much intact," said Chief Financial Officer William Wheeler; but he said the insurer does not expect quick improvement in investment markets. Wheeler said MetLife foresees 25 percent earnings growth, or better, in 2010 as markets gradually improve.