MetLife has a large market capitalization and is part of key stock market indices like the S&P 500. It is part of major sector-agnostic ETFs.
A G-SII must also fulfill higher loss absorbency requirements for activities that are nontraditional and noninsurance in nature.
Over the last four years, MetLife’s price ranged between 0.5x–1.0x its book value per share. Its current price-to-book value multiple is ~0.8x.
After several years of flat dividends (74 cents per share on an annual basis), MetLife increased its payout in 2Q13, as well as in the same quarter of 2014.
MetLife’s return on equity evolution shows recovery from 2008–2009 levels, although it has yet to reach that of the pre-crisis periods.
MetLife’s balance sheet contains cash and liquid assets of ~$6.1 billion at the end of 2014, which shows a modest increase from the end of the half year.
MetLife purchased Alico from AIG in 2010, helping MetLife gain exposure to emerging economies where Alico was already operating.
From 2011–2013, MetLife’s emerging market businesses saw 11% cumulative annual growth rate in operating earnings. EMEA’s growth rate was 16.1%.
Latin America is a major contributor to MetLife’s business unit, with nearly half the revenue. EMEA follows, with a share of revenues of ~40% in 2013.
MetLife targeted $1 billion in expense savings, which the company is on track to achieve in 2015. Cumulative expense savings in 2014 exceeded $910 million.
MetLife has exposure to many currencies, particularly the euro, the Polish zloty, and the Russian ruble, which diversifies its foreign exchange exposure.
Contributing ~20% to the group’s operating earnings, the Asia business segment remains a key profit driver of MetLife.
MetLife plans to grow its retail and group business in Latin America, capitalizing on the growing middle class, affluent class, and corporate needs.
MetLife gained 45% of the $3.8 billion pension closeout market in 2013. The company expects the closeout market to maintain its robustness in the near term.
MetLife is the market leader in the Large market with ~30% of the market share, while its market share is slightly above 5% in the Middle market.
MetLife is working to develop direct sales channels, which would reduce the share of agent commissions in operating costs.
MetLife intends to grow its retail business and expects low single-digit growth in the long term.
MetLife is a market leader in the US and the largest life insurer in Mexico and Chile. It is among the leading players in Japan, Korea, and Poland.
Discover Financial’s (DFS) stock price rose from $14.70 at the end of 2009 to $65.50 at the end of 2014. This is an increase of 346%.
Discover is making good progress in direct consumer banking. It focuses on private student, personal, and home equity loans.