NEW YORK (AP) -- MetLife Inc. said Tuesday its third-quarter results will be marked by a drop in investment income and fee revenue amid the downturn in world financial markets.

The insurer said it expects to report third-quarter income from continuing operations between $1.005 billion and $1.150 billion, or $1.38 to $1.58 per share.

On average, analysts expect the company to have earned $1.44 a share in the third quarter, or $1.048 billion, according to a Thomson Reuters poll.

The company said third-quarter premiums, fees and other revenues were about $8.6 billion, up 16 percent over 2007's third quarter.

It said it expects its third-quarter operating earnings to be between $600 million and $675 million, or $0.83 to $0.93 per share.

The operating results include an estimate that third-quarter variable investment income would fall $117 million below company plans, or $0.16 a share. It cited "negative hedge fund and private equity returns."

It also said the downturn in stock markets hit fee revenue in its variable annuity business, trimming its operating results by about $105 million or $0.14 per share.

MetLife said it will report its full third-quarter results on Oct. 29.

MetLife's shares fell $7.45, or 16.8 percent, to $36.87 on Tuesday but rose in after-hours trading, gaining back $1.13, or 3 percent, to $38.00.

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