MetLife said it would would raise capital and cut jobs after its earnings fell by up to 48 per cent in the third quarter amid losses from exposure to Lehman Brothers, Washington Mutual and AIG.

The the biggest US life insurer said that it would sell 75m shares in an effort to raise capital to assure investors, and position itself to take advantage of future opportunities. At Tuesday’s closing share prices that would raise $2.8bn. Last week, an analyst at Atlantic Equities predicted MetLife might raise capital to bid for AIG’s assets.