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Komfie Manalo, Opalesque Asia:

Largest U.S. insurer MetLife on Thursday said it would withdraw $1.2bn from its $1.8bn hedge fund portfolio after investments in hedge funds and bonds declined, various media reported.

MetLife chief investment officer Steven Goulart told the media in a conference call from his office in New York that the insurer recorded negative returns in the first quarter of this year.

Bloomberg quoted him as saying, "It’s had up-and-down years and really it’s just too inconsistent, we think, in actual performance. What we’ll be left with is a small portfolio of really our most consistently performing managers in hedge funds."

Goulart added that firm’s chief executive officer Steve Kandarian wants to raise MetLife’s income and will focus on free cash flow.

Kandarian added, "Some earnings variability is an acceptable risk, as these asset classes have provided strong returns to MetLife shareholders over time ." On Wednesday, MetLife reported a quarterly operating profit that fell far short of expectations as income from investments in hedge funds and bonds declined. American International Group Inc. the No. 1 U.S. commercial insurer, earlier reported a lower-than-expected pro......................

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