uploads/2017/12/EV-to-rev-1.png

Assessing MetLife’s Assets and Liabilities

By

Updated

Total assets

Whereas MetLife’s (MET) total assets fell to $720.5 billion at the end of 3Q17 from $898.7 billion at the end of 4Q16, its total investments rose to $445.7 billion from $420.9 billion, mainly due to higher sales of fixed maturity securities.

Between the end of 4Q16 and 3Q17, MetLife’s accrued investment income rose from $3.3 billion to $3.6 billion, and its separate account assets fell from $203.3 billion to $195.5 billion. While MetLife has a last-12-month EV[1.enterprise value]-to-revenue ratio of 1.1x, peers (XLF) Reinsurance Group of America (RGA), CNO Financial Group (CNO), and Arch Capital Group (ACGL) have ratios of 1.0x, 1.7x, and 3.2x, respectively.

Total liabilities, excluding equity

MetLife’s total liabilities excluding equity stood at $663.5 billion at the end of 3Q17, compared with $831.2 billion at the end of 4Q16. Its future policy benefits rose from $166.7 billion to $176.0 billion. Between the end of 4Q16 and 3Q17, MetLife’s policyholder account balances rose to $182.5 billion from $173.1 billion, and its short-term debt fell to $214 million from $242 million.

More From Market Realist