MetLife, Inc. (MET) - NYSE
  • Wed, Feb. 3, 10:25 AM
    • This just in: The financial sector is having a worse go it this year than energy, with the XLF lower by 13.6% YTD vs. the XLE's 9% decline.
    • Leading a big reversal from this morning higher open is the XLF's 2% decline. The S&P 500 is now off 1%, and the XLE "just" 0.85%.
    • Among the issues for the financials are two items: 1) Hopes for a sustained rate hike cycle have been dashed, with the 10-year yield tumbling all the way to 1.82% currently from about 2.30% when the Fed hiked in mid-December. Fed speakers are all-of-a-sudden sounding very dovish (Dudley is the latest), and short-term rate futures are now pricing in just a 50% chance of even one Fed rate increase this year; 2) For lenders specifically, there's worry over their exposure to the crashing energy sector. No doubt better capitalized today than 10 years ago, losses are still losses even if they don't threaten the viability of the bank.
    • JPMorgan (JPM -2.6%), Wells Fargo (WFC -3.6%), Morgan Stanley (MS -3.5%), KeyCorp (KEY -3.1%), PNC Financial (PNC -2%), Comerica (CMA -2.7%), Schwab (SCHW -3.8%), MetLife (MET -2.5%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS, XLFS
    | Wed, Feb. 3, 10:25 AM | 16 Comments
  • Tue, Feb. 2, 5:35 PM
  • Tue, Feb. 2, 12:52 PM
    • Alongside energy's underperformance today is the financial sector (XLF -2.4%). The long-awaited hope of a sustained rise in interest rates appears dashed once again - at least so far this year.
    • The 10-year Treasury yield is lower by seven basis points to 1.88% - a nine-month low - and short-term rate markets are now pricing is less than one 25 basis point rate hike for the remainder of the year.
    • TBTFs: Bank of America (BAC -4.4%), Citigroup (C -4%), Goldman Sahcs (GS -4.4%)
    • Regionals: U.S. Bancorp (USB -2.5%), Regions (RF -3.1%), SunTrust (STI -4%)
    • Life insurers: MetLife (MET -3%), Prudential (PRU -3.2%), Lincoln Financial (LNC -3.7%)
    • Online brokerage: Schwab (SCHW -4.2%), E*Trade (ETFC -3.8%), Ameritrade (AMTD -3.6%)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, FINZ, KRS, XLFS
    | Tue, Feb. 2, 12:52 PM | 69 Comments
  • Tue, Jan. 26, 12:45 PM
    • The insurer lent out about $14.3B globally last year, up 18% from 2014, and the highest amount in company history. Met (MET +1.9%) also committed about $1B in real estate equity.
    • The company has a $500B investment portfolio and is under pressure to boost yields.
    • The news jibes with recent comments from BlackRock that institutional investors are looking at more illiquid investments such as real estate as they search for yield but try limit exposure to stocks.
    | Tue, Jan. 26, 12:45 PM
  • Fri, Jan. 22, 11:36 AM
    • Alongside its upgrade of Lincoln National to Strong Buy from Outperform, Raymond James does the same for MetLife (MET +2.4%).
    • Like Lincoln, the era of rising rates is so far not working out for MetLife, which is lower by 24% over the last six months, including a 10% decline in 2016.
    • The price target of $56 is about 35% above yesterday's close.
    • Previously: Raymond James doubles down on Lincoln National (Jan. 22)
    | Fri, Jan. 22, 11:36 AM
  • Tue, Jan. 19, 6:45 PM
    • MetLife (MET -0.8%) has joined with the country's third-largest public pension fund on a new real estate venture.
    • The New York State Common Retirement Fund is teaming with MetLife to create the investment venture, which comprises seven properties valued at over $1.4B. The pension fund will hold a 49.9% stake.
    • The properties total about 3.7M square feet, mostly office space, in major U.S. markets. They'll be administered by Metlife Investment Management ($20B of commitments from third-party investors), the company's institutional client investment business.
    | Tue, Jan. 19, 6:45 PM
  • Thu, Jan. 14, 12:54 PM
    • "We believe splitting MetLife (MET +1.9%) into two separate companies is negative for holding-company creditors and policyholders," says Moody's, putting the insurer's credit rating on review for downgrade. “MetLife will have a weaker business profile and a lower level of earnings diversification.”
    • The new company would have just about $240B in assets - putting it at simlar levels to Lincoln Financial, Hartford, and Voya - and thus won't be designated a SIFI. While this may be a boon to returns for shareholders, creditors could feel differently.
    • The cost of insuring against a MetLife default over the next five years rose to 119 basis points today vs. 99.5 bps prior to the disclosure of the plan.
    | Thu, Jan. 14, 12:54 PM | 2 Comments
  • Wed, Jan. 13, 9:51 AM
    • "Our bottom line on the announcement is that we think it is the right short term and long term direction for the company and is a meaningful positive for the valuation of the stock, especially at the current depressed levels," says Credit Suisse's Tom Gallagher, upping his price target on MetLife (MET +6.3%) to $60 from $57 (it's currently at $44.64).
    • The move, he said, creates greater visibility for capital returns (i.e. higher than otherwise).
    • Deutsche's Yaron Kinar previously wasn't a big fan of any spinoff plan as he believed the capital infusion necessary to execute would be too onerous. Last night's announcement, however, suggests management sees the separation as viable.
    • Alongside nice gains in MetLife and AIG, Prudential Financial (PRU +2%) - also a SIFI - is on the move.
    • Previously: MetLife move ups pressure on AIG (Jan. 13)
    | Wed, Jan. 13, 9:51 AM
  • Wed, Jan. 13, 9:17 AM
    | Wed, Jan. 13, 9:17 AM | 4 Comments
  • Wed, Jan. 13, 7:39 AM
    • In brushing off Carl Icahn's proposal to break the company up, AIG management contends escaping the government's systemically-important designation wouldn't necessarily be of any benefit to the company.
    • MetLife (NYSE:MET) sees things differently, and last night announced its plan to sell or otherwise spin off much of its U.S. retail operation, with CEO Steven Kandarian saying the SIFI label and tighter capital requirements could put the business under "significant competitive disadvantage."
    • "This announcement further crystallizes the compliance and operational burden of the SIFI tag, which is likely to intensify calls for AIG to consider embracing a strategic shift resulting in de-designation," says Compass Point's Isaac Boltansky.
    • Met is higher by 6.9% premarket, and AIG by 0.9%
    • "The news will only intensify AIG's widely reported activists' pressure," says KBW's Meyer Shields. AIG CEO Peter Hancock has set a Jan. 26 meeting to lay out his strategy.
    • Previously: MetLife up sharply on plan to separate U.S. retail operations (Jan. 12)
    | Wed, Jan. 13, 7:39 AM | 10 Comments
  • Tue, Jan. 12, 5:37 PM
    • Top gainers, as of 5.25 p.m.: AU +8.0%. MET +7.1%.
    • Top losers, as of 5.25p.m.: FXCM -8.6%. AKS -3.8%. SGYP -3.8%. F -3.7%. SHPG -2.1%.
    | Tue, Jan. 12, 5:37 PM
  • Tue, Jan. 12, 4:29 PM
    • The separation  could come in the form of an IPO, a spinoff, or a sale.
    • As of Sept. 30, the new company would represent 20% of the operating earnings of MetLife (NYSE:MET) and 50% of the operating earnings of MetLife's U.S. retail segment. It would have about $240B of total assets, including 60% of current U.S. variable annuity account values, including 75% of variable annuities with living benefit guarantees. It will be led by current EVP Eric Steigerwalt.
    • Even though MetLife is appealing its SIFI designation - and hopes to win that case - CEO Steven Kandarian says the separation lessens the risks the company would have to cope with higher capital requirements.
    • The stock's higher by 9% after hours.
    | Tue, Jan. 12, 4:29 PM | 2 Comments
  • Wed, Jan. 6, 4:21 PM
    • MetLife (NYSE:MET) declares $0.375/share quarterly dividend, in line with previous.
    • Forward yield 3.38%
    • Payable March 14; for shareholders of record Feb. 5; ex-div Feb. 3.
    | Wed, Jan. 6, 4:21 PM
  • Tue, Jan. 5, 10:06 AM
    • An outlier to the downside among the life insurers is MetLife (MET -1%) as Citigroup throws in the towel on its Buy rating, downgrading to Neutral with $51 price target cut from $57.
    • Thought to be among the beneficiaries of higher rates Met was having a strong 2015, but peaked in July at about $58 per share. It's a $47 stock in the early going this morning. It began 2015 at about $52.
    | Tue, Jan. 5, 10:06 AM
  • Dec. 16, 2015, 3:04 PM
    | Dec. 16, 2015, 3:04 PM | 48 Comments
  • Nov. 11, 2015, 10:54 AM
    • MetLife's (MET -0.6%) third party asset manager - MetLife Investment Management - original focus when began in 2012 was on real estate and private-placement debt. As part of its growth plan, it's bringing new strategies on structured credit and junk bonds to market this quarter, and could establish an emerging markets offering in the future, says CIO Steven Goulart.
    • Constrained by low interest rates and tougher regulations, insurers have moved to manage money for third parties as a way to generate fee income. MIM currently oversees $1.6B in commercial mortgages and $5.6B in private placements.
    • MetLife has already beefed up MIM's staff and still has aggressive hiring plans for the operation, says Goulart. Acquisitions will be necessary as well, he says, as organic growth alone won't be enough to make the business material.
    • Source: Bloomberg
    | Nov. 11, 2015, 10:54 AM | 1 Comment
Company Description
MetLife, Inc. provides insurance and financial services to individual and institutional customers. It offers life insurance, annuities, automobile and homeowner's insurance and retail banking services to individuals as well as group insurance, reinsurance and retirement and savings products and... More
Sector: Financial
Industry: Life Insurance
Country: United States