July 31 (Bloomberg) — MetLife Inc. ChiefExecutive Officer Steven Kandarian, who last month announced theinsurer's first stock buyback since 2008, said it's hard to committo additional repurchases as he awaits clarity on U.S. capitaloversight. “We were cautious and remain cautious in terms of the capitalmanagement because of the uncertainty,” Kandarian told analyststoday. “Returning capital to shareholders is a high priority forus. We have to do that consistent with a regulatory environment inwhich we find ourselves, and as we learn more about that we'll havemore to say.” MetLife said last month that it would buy back $1 billion ofshares, a sum that Kandarian called “modest.” The repurchaseoffsets the dilution of units that were converted into common stockas part of the 2010 purchase of AmericanLife Insurance Co. Hartford Financial Services GroupInc., a smaller rival, yesterday increased its buyback plan toabout $2.8 billion for this year and next. Kandarian's company, the largest U.S. life insurer, is in thefinal stage of review by U.S. regulators to determine whether it isa potential threat to the financial system. Such a designationwould subject New York-based MetLife to oversight by the FederalReserve and possibly stricter capital standards, though final ruleshaven't been written. Randy Binner, an analyst at FBR Capital Markets, askedKandarian on a conference call whether he could conduct buybacksbeyond those needed to offset equity dilution. “Until we have more information it's going to be difficult forus to answer that question,” the CEO said. MetLife declined 1.6 percent to $53.56 at 9:43 a.m. in NewYork trading, erasing its gain for the year. The insurer lateyesterday announced second-quarter profit that missed analysts'estimates as profit in the Americas group-benefits unit fell oncosts tied to dental insurance and disabilityclaims.

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